MIRA INFORM REPORT

Report Date :

24.07.2012

IDENTIFICATION DETAILS

Name :	HYDROMER, INC.
Registered Office :	35 Industrial Parkway Branchburg, NJ 08876
Country :	United States
Financials (as on) :	30.06.2011
Year of Establishment :	1980
Legal Form :	Public Parent
Line of Business :	Engaged in the business of inventing, developing, patenting, licensing, manufacturing and selling hydrophilic polymer-based products and services.
No. of Employees :	43

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Top of Form

Bottom of Form

company name and address

Hydromer, Inc.

35 Industrial Parkway
Branchburg, NJ 08876
United States
Tel:	908-722-5000
Fax:	908-526-3633
Toll Free:	800-326-5976
www.hydromer.com

Employees:

43

Company Type:

Public Parent

Corporate Family:

2 Companies

Traded:

Over The Counter:

HYDI

Incorporation Date:

1980

Auditor:

Rosenberg, Rich, Baker, Berman & Company

Financials in:	USD (mil)
Fiscal Year End:	30-Jun-2011
Reporting Currency:	US Dollar
Annual Sales:	5.5 ^1
Net Income:	(0.6)
Total Assets:	7.0 ^2
Market Value:	6.0
	(29-Jun-2012)

Business Description

Hydromer, Inc is a bio-polymer research and development company. The Company is developing polymeric complexes for commercial use in the medical, commercial, cosmetics and animal health markets. The Company operates in two segments: Polymer Research and Medical Products. Products included in the polymer research segment are Aquamere, Aquatrix, Dermaseal, Dragonhyde, Hydromer Anti-Fog/Condensation Control Coatings, Hydromer Lubricious Coatings, Sea-Slide and T-HEXX Barrier Dips and Sprays. Research and Development services and all of the Company's royalties and contract revenues are reported in this segment. The medical products segment included an original equipment manufacturer (OEM) product line of bipolar coagulation probes, placement catheters, bilary stents, jejunal and enteral feeding accessories, guidewires, biofeedback devices for fecal and urinary incontinence and other endoscopic accessories. For the six months ended 31 December 2010, Hydromer Inc.'s revenues decreased 21% to $2.5M. Net loss increased 30% to $453K. Revenues reflect a decrease in income from polymer research segment and lower sale of medical products. Higher net loss reflects an increase in other expenses, an absence of gain from sale of assets and lower benefit from income taxes. Hydromer, Inc is a bio-polymer research and development company.

Engaged in the business of inventing, developing, patenting, licensing,
manufacturing and selling hydrophilic polymer-based products and services.

Industry

Industry	Miscellaneous Financial Services
ANZSIC 2006:	6640 - Non-Financial Intangible Assets (Except Copyrights) Leasing
NACE 2002:	6523 - Other financial intermediation not elsewhere classified
NAICS 2002:	325998 - All Other Miscellaneous Chemical Product and Preparation Manufacturing
UK SIC 2003:	6523 - Other financial intermediation not elsewhere classified
US SIC 1987:	6794 - Patent Owners and Lessors

Key Executives   (Emails Available)

Name	Title
Manfred F. Dyck	Chairman of the Board, President, Chief Executive Officer
Robert Y. Lee	Chief Financial Officer, Vice President - Finance, Treasurer
Rainer Gruening	Vice President - Intellecutal Property, T-HEXX Int'l Sales
Robert J. Moravsik	Senior Vice President, General Counsel, Secretary
Martin C. Dyck	Executive Vice President - Operations; President of Biosearch Medical Products

Significant Developments

Topic	#*	Most Recent Headline	Date
Strategic Combinations	1	Hydromer, Inc. Enters Into Strategic Development Agreement With N8 Medical Inc. For New Class Of Antimicrobial	28-Jun-2012
Business Deals	1	Hydromer, Inc. Enters Into Exclusive Supply And Support Agreement On Anti-Frost Freezer Door Coating	18-Jul-2012

* number of significant developments within the last 12 months

News

Title	Date
Hydromer, Inc. Enters Into an Exclusive Supply and Support Agreement on Its Anti-Frost Freezer Door Coating Market Wire (297 Words)	18-Jul-2012
FORM 8-K: HYDROMER FILES CURRENT REPORT U.S. Fed News (101 Words)	30-Jun-2012
Hydromer, Inc. Enters Into a Strategic Development Agreement With N8 Medical Inc. for a New Class of Antimicrobial Coatings Market Wire (541 Words)	28-Jun-2012
Hydromer, Inc. Enters Into Medical Coating Licenses With Three Chinese Medical Device Companies Market Wire (254 Words)	9-May-2012
Hydromer's Hydrophilic Coating on Jotec's EndoVascular Implant Placement Devices Market Wire (338 Words)	27-Apr-2012

Financial Summary

As of 31-Mar-2012

Key Ratios	Company	Industry
Current Ratio (MRQ)	2.17	2.18
Quick Ratio (MRQ)	1.89	1.35
Debt to Equity (MRQ)	0.99	0.82
Sales 5 Year Growth	-6.86	6.26
Net Profit Margin (TTM) %	-4.04	10.56
Return on Assets (TTM) %	-3.46	8.26
Return on Equity (TTM) %	-8.29	22.07

Stock Snapshot

Traded: Over The Counter: HYDI

As of 29-Jun-2012

   Financials in: USD

Recent Price	1.25	EPS	-0.12
52 Week High	1.25	Price/Sales	1.08
52 Week Low	0.50	Price/Book	2.03
Avg. Volume (mil)	0.0013
Market Value (mil)	5.97

	Price % Change	Rel S&P 500%
4 Week	8.70%
13 Week	20.19%
52 Week	92.31%
Year to Date	34.41%

2 Year Weekly End Price & Volume

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1
2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

Corporate Overview

Location
35 Industrial Parkway
Branchburg, NJ, 08876
Somerset County
United States

Tel:	908-722-5000
Fax:	908-526-3633
Toll Free Tel:	800-326-5976

www.hydromer.com

Quote Symbol - Exchange
HYDI - Over The Counter
Sales USD(mil):	5.5
Assets USD(mil):	7.0
Employees:	43
Fiscal Year End:	30-Jun-2011

Industry:	Miscellaneous Financial Services

Incorporation Date:	1980
Company Type:	Public Parent
Quoted Status:	Quoted

Chairman of the Board, President, Chief Executive Officer:	Manfred F. Dyck

Company Web Links

Company Contact/E-mail

Corporate History/Profile

Employment Opportunities

Financial Information

Home Page

News Releases

Products/Services

Contents Industry Codes Business Description Product Codes Financial Data

Market Data Key Corporate Relationships Additional Information

Industry Codes

ANZSIC 2006 Codes:
1899	-	Other Basic Chemical Product Manufacturing Not Elsewhere Classified
6640	-	Non-Financial Intangible Assets (Except Copyrights) Leasing
6240	-	Financial Asset Investing
2412	-	Medical and Surgical Equipment Manufacturing

NACE 2002 Codes:
6523	-	Other financial intermediation not elsewhere classified
3310	-	Manufacture of medical and surgical equipment and orthopaedic appliances
7415	-	Management activities of holding companies
2466	-	Manufacture of other chemical products not elsewhere classified

NAICS 2002 Codes:
325998	-	All Other Miscellaneous Chemical Product and Preparation Manufacturing
551112	-	Offices of Other Holding Companies
339112	-	Surgical and Medical Instrument Manufacturing

US SIC 1987:
2899	-	Chemicals and Chemical Preparations, Not Elsewhere Classified
6794	-	Patent Owners and Lessors
6719	-	Offices of Holding Companies, Not Elsewhere Classified
3841	-	Surgical and Medical Instruments and Apparatus

UK SIC 2003:
6523	-	Other financial intermediation not elsewhere classified
3310	-	Manufacture of medical and surgical equipment and orthopaedic appliances
7415	-	Management activities of holding companies
2466	-	Manufacture of other chemical products not elsewhere classified

Business Description

Hydromer, Inc is a bio-polymer research and development company. The Company is developing polymeric complexes for commercial use in the medical, commercial, cosmetics and animal health markets. The Company operates in two segments: Polymer Research and Medical Products. Products included in the polymer research segment are Aquamere, Aquatrix, Dermaseal, Dragonhyde, Hydromer Anti-Fog/Condensation Control Coatings, Hydromer Lubricious Coatings, Sea-Slide and T-HEXX Barrier Dips and Sprays. Research and Development services and all of the Company's royalties and contract revenues are reported in this segment.

The medical products segment included an original equipment manufacturer (OEM) product line of bipolar coagulation probes, placement catheters, bilary stents, jejunal and enteral feeding accessories, guidewires, biofeedback devices for fecal and urinary incontinence and other endoscopic accessories. Remaining in this segment are contract coating services and engineering services.

The Company owns several process and applications for Hydromer coatings (Hydromer). These polymers become lubricious (slippery) when wet. The Company also has permanent anti-fog materials, hydrophilic polyurethane foams, hydrophilic polyurethane blends, hydrophilic polyvinylbutyral alloys, several hydrogels and an anti-bacterial medical material. The Company also owns AQUAMERE, a cosmetic intermediate with water resistant film forming properties; AQUATRIX, a cosmetic hydrogel; Dermaseal, a dermal barrier film product for the prevention of contact dermatitis; DRAGONHYDE, a hoof bath concentrate; Sea-Slide, a coating for watercraft hulls; and T-HEXX, a barrier teat dip product group for the prevention of mastitis in dairy animals.

Medical

The Company's business in the medical field consisted of the sale of lubricious coatings and the licensing of its lubricious coating technologies. The Company's coatings technologies include its hydrophilic lubricious coatings, biostatic/anti-microbial coatings, cell anti-mitosis, anti-thrombogenic coatings, and cell adhesion promoting coatings. When treated with a Hydromer lubricious polymer, a medical device becomes slippery when wet, allowing for insertion into any orifice of the body, in penetration of the skin or for device-on-device use. Hydromer coatings are bonded to the device. Hydromer coatings can also be coated on complex surfaces and on the inside walls of devices. A portion of the Company's revenues is derived from stand-still and license agreements. The stand-still agreements provide the customers the right to enter into a license or supply and support agreement with the Company and to market the product treated with Hydromer, which provides the Company an initial flat fee, followed by periodic royalty payments or support fees based on sales.

As of June 30, 2010, the Company had supply and support agreements with 27 companies covering the application or availability of Hydromer coatings to the devices, including angioplasty balloon catheters, biliary and pancreatic stents, central venous catheters, embolization delivery devices and enteral feeding products. Applications of the Company's Hydrogels are being developed for wound care, implants, drug delivery, burn care, ultrasonic couplants and cosmetic uses for several customers. The Company is also identifying partners to offer hydrogel coating services to clients who do not have rolled goods coating capability and to license Hydrogel technology for cosmetic and medical use, including drug release. It allows for the stabilization of biomolecules, cell cultures, drugs and other active substances without damaging external energy sources. The Company manufactures bipolar coagulation probes; placement catheters, biliary stents; jejunal and enteral feeding accessories; guidewires; biofeedback devices for fecal and urinary incontinence, and other endoscopic accessories. It coats various types of material, such as silicone, stainless steel, Pebax and polypropylene.

Industrial/Commercial

Hydromer Anti-Fog/Condensation Control is an optical coating, which prevents the accumulation of vision-obscuring condensation under humidity conditions. The Company is selling this material to manufacturers of greenhouse panels, refrigerator freezer doors, industrial and medical safety and swim goggles, aircraft windows, automotive headlight assemblies and gauge and meter manufacturers in the United States and internationally, including the People’s Republic of China. The Company also offers a Sea-Slide coating that reduces friction between the hull and water, and can be used over anti-fouling paints.

Cosmetics

The Aquamere series of the Company's cosmetic intermediaries are sold to cosmetic companies globally for use in hair dyes, hair conditioners, mascaras, eye shadows, sunscreens and body lotions. They are in test for use in shampoos, hair styling aids, over the counter (OTC) dermal drug delivery and topical disinfectants. The Aquamere series of cosmetic polymer solutions are both aqueous and hydro-alcoholic based systems. They are also offered with cationic and silicone grafted modifications. The Company's Dermaseal line, a film-forming hydrogel technology, is being sold to cosmetic companies as a base for foundations and other skin care products. It is also being tested for use in broader skin care, cosmetic and OTC drug delivery. Dermaseal is the for barrier film compositions preventing contact dermatitis. Clinical testing has demonstrated that these compositions protect the user from the effects of contact with poison ivy, oak or sumac plant allergens.

Animal Health

Barrier Dips and Sprays utilizing T-HEXX technology offered dairy farmers value and unsurpassed protection as the no-drip and water resistant barrier products on the market preventing environmental water containing mastitis-causing organisms, including mycoplasma, from reaching the inner teat surface. The T-HEXX Barrier products contain ingredients that kill mastitis-causing bacteria on contact while continuing to remain active up to 12 hours. Its products are compatible with mechanical equipment and milking procedures and are removed using traditional pre-milking methods. Its T-HEXX DRY is used as a non-irritating low-cost sealant during the dry-off and the critical pre-calving period.

The Company’s T-HEXX Syrup concentrated post-milking barrier teat dips, which requires just a blending with water reducing logistics and shipping costs. During fiscal 2010, the Company launched T-HEXX DRY Naturel External Teat Sealant, a triclosan free external teat sealant for dry cows, Sani-Spray non-barrier dips and sprays and DRAGONHYDE Hoof Bath Concentrate

More Business Descriptions

Hydromer, Inc is a bio-polymer research and development company. The Company is developing polymeric complexes for commercial use in the medical, commercial, cosmetics and animal health markets. The Company operates in two segments: Polymer Research and Medical Products. Products included in the polymer research segment are Aquamere, Aquatrix, Dermaseal, Dragonhyde, Hydromer Anti-Fog/Condensation Control Coatings, Hydromer Lubricious Coatings, Sea-Slide and T-HEXX Barrier Dips and Sprays. Research and Development services and all of the Company's royalties and contract revenues are reported in this segment. The medical products segment included an original equipment manufacturer (OEM) product line of bipolar coagulation probes, placement catheters, bilary stents, jejunal and enteral feeding accessories, guidewires, biofeedback devices for fecal and urinary incontinence and other endoscopic accessories. For the six months ended 31 December 2010, Hydromer Inc.'s revenues decreased 21% to $2.5M. Net loss increased 30% to $453K. Revenues reflect a decrease in income from polymer research segment and lower sale of medical products. Higher net loss reflects an increase in other expenses, an absence of gain from sale of assets and lower benefit from income taxes. Hydromer, Inc is a bio-polymer research and development company.

Establishments primarily engaged in commercial physical and biological research and development on a contract or fee basis.

Hydromer Inc. is an innovative broad-based technology-driven company engaged in the business of inventing developing patenting licensing manufacturing and selling hydrophilic polymer-based products and coatings for commercial markets. While maintaining its industry leadership position in permanent lubricious coatings for medical devices Hydromer constantly strives to build upon its current technologies - successfully expanding its technology/product base to include anti-fog and condensation control coatings for optical applications water-resistant film formers and allergen barriers for cosmetics and unique hydrogels for wound care and pharmaceutical delivery applications. Hydromer Inc. was founded in 1980 to capitalize on the newly developed and patented technologies in hydrophilic complexing polymers. These polymers exhibit unique properties by imparting biological compatibilities to medical devices particularly in the cardiovascular area for devices like stents including the emerging stent drug delivery distal protection devices and therapeutic catheters. The initial great success on licensing these patents gave rise to an entire family of patents covering much larger fields of application...

Hydromer, Inc. (Hydromer) is a US based polymer research and development company. The company is involved in the development, manufacturing, and selling of hydrophilic polymer-based products and offers related services. The company’s coatings technologies include biostatic/anti-microbial coatings, hydrophilic lubricious coatings, cell anti-mitosis and anti-thrombogenic coatings, and cell adhesion promoting coatings. Hydromer through its subsidiary unit Biosearch Medical Products Inc. offers hand held electronic devices and anorectal probes. Its products and technologies find application in various industrial domains including medical device, pharmaceutical, animal health, biotechnology, industrial plastics, and cosmetic and personal care. Hydromer is headquartered at Branchburg, in New Jersey, the US.Recently, the company entered into license agreements with three separate Chinese medical device manufacturers, in accordance to which each Chinese company is licensed to use certain proprietary Hydromer medical coatings on medical devices, such as intraocular lens injection nozzles, tissue culture dishes and rods, and various intravenous catheters.The company reported revenues of (U.S. Dollars) USD 5.52 million during the fiscal year ended June 2011, a decrease of 11.05% from 2010. The operating loss of the company was USD 0.91 million during the fiscal year 2011, as compared to an operating loss of USD 1.02 million during 2010. The net loss of the company was USD 0.58 million during the fiscal year 2011, as compared to a net loss of USD 0.56 million during 2010.

Hydromer is a broad-based, technology-driven company engaged in the business of inventing, developing, patenting, licensing, manufacturing and selling hydrophilic polymer-based products and coatings for commercial markets. While maintaining its industry leadership position in permanent lubricious coatings for medical devices, the company constantly strives to build upon its technologies by expanding its technology and product base to include anti-fog and condensation control coatings for optical applications, water-resistant film formers and allergen barriers for cosmetics, and hydrogels for wound care and pharmaceutical delivery applications. The company was established in 1980 to capitalize on the newly developed and patented technologies in hydrophilic polymers. Hydromer is located in Branchburg, N.J.

Manufacturer of material coatings and cosmetic intermediates including a hydrophilic polymer coating which becomes slippery when wet and is used for catheters and nasal gastric feeding tubes. The product is also used as an anti-fog coating material. The company also manufactures an anti-drag coating which is used on the bottom of boats. Manufacturer of biomedical coatings and site specific drug delivery materials. Parent/holding company with a high-tech unit involved in medical products. Products are sold to multiple industries.

Product Codes

Product Code	Product Description
BIO-MT	Site specific drug delivery materials
BIO-MT	Biomedical coatings
MAT-CO-N	Polymer hydro-gel coatings
MAT-CO-N	Cosmetic intermediates
MAT-CO-N	Anti-drag coatings
MAT-CO-S	Protective coatings
ZZZ-HC	Parent/Holding company

Financial Data

Financials in:	USD(mil)
Revenue:	5.5
Net Income:	-0.6
Assets:	7.0
Long Term Debt:	2.7
Total Liabilities:	4.1
Working Capital:	0.0
Date of Financial Data:	30-Jun-2011

1 Year Growth

-11.1%

NA

-7.1%

Market Data

Quote Symbol:	HYDI
Exchange:	Over The Counter
Currency:	USD
Stock Price:	1.3
Stock Price Date:	06-29-2012
52 Week Price Change %:	92.3
Market Value (mil):	5,965.4
SEDOL:	2451220
ISIN:	US4490011065
Equity and Dept Distribution:
Common Stock no Par, 12/10, 15M auth., 4,783,235 issd., less 10,917 shs. in Treas. @ $6K. Insiders own 56.63%. Shares issd. 9/82 in distribution from Biosearch Medical Products.Basis: 1-for-1.

Key Corporate Relationships

Auditor:	Rosenberg, Rich, Baker, Berman & Company
Bank:	New Millennium Bank, De Lage Landen Financial Services
Auditor:	Rosenberg, Rich, Baker, Berman & Company

Additional information
ABI Number:	406326660

Location
35 Industrial Pkwy Branchburg, NJ 08876-3424 United States
County:	Somerset
MSA:	New York, NY
Phone:	908-722-5000
Fax:	908-526-3633
Toll Free:	800-326-5976
URL:	http://hydromer.com
ABI^©:	406326660
Employees:	43
Facility Size(ft^2):	2,500 - 9,999
Business Type:	Public
Location Type:	Headquarter
Ticker:	HYDI
Exchange:	OTHER

Primary Line of Business:
SIC:	8731-01 - Laboratories-Research & Development
NAICS:	541710 - Physical, Engineering, & Biological Research
Secondary Lines of Business:
NAICS:	325620 - Toilet Preparation Mfg
	325188 - All Other Basic Inorganic Chemical Mfg
	339112 - Surgical & Medical Instrument Mfg
	325510 - Paint & Coating Mfg
SICs:	2819-98 - Industrial Inorganic Chmcls NEC (Mfrs)
	2844-05 - Cosmetics-Manufacturers Equipment (Mfrs)
	2851-98 - Paint Varnish & Allied Products (Mfrs)
	3841-04 - Physicians & Surgeons Equip & Supls-Mfrs

Corporate Structure News:

Hydromer, Inc.
Total Corporate Family Members: 2

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Hydromer, Inc.	Parent	Branchburg, NJ	United States	Miscellaneous Financial Services	5.5	43
Biosearch Medical Products Inc	Subsidiary	Branchburg, NJ	United States	Medical Equipment and Supplies		90

Hydromer, Inc.

Competitors Report

CompanyName	Location	Employees	Ownership
Ast Products Inc	Billerica, Massachusetts, United States	38	Private
Merit Medical Systems, Inc.	South Jordan, Utah, United States	2,400	Public
New Oriental Energy & Chemical Corp.	Xinyang, China	1,200	Public
Plant Health Care plc	Pittsburgh, Pennsylvania, United States	49	Public
Shenzhen Batian Ecotypic Engineering Co	Shenzhen, China	2,080	Public
SurModics, Inc.	Eden Prairie, Minnesota, United States	113	Public

Executives Report

Board of Directors

Name	Title	Function
Manfred F. Dyck	Chairman of the Board, President, Chief Executive Officer	Chairman
Biography: Mr. Manfred F. Dyck is Chairman of the Board, President, Chief Executive Officer of Hydromer Inc. He has been Chairman of the Board of the Company since June 1983 and Chief Executive of the Company since August of 1989; Director of Biosearch Medical Products Inc., from 1975 until 2000 when it was acquired by the Company; Director of the Company since 1980. Age: 76 Education: University of Miami, doctorate (Chemistry And Physiology) University of Miami, graduate Compensation/Salary:$269,100 Compensation Currency: USD
Robert H. Bea	Director	Director/Board Member
Biography: Mr. Robert H. Bea is Director of Hydromer Inc., since 1996. He is Senior VP, Regulatory Affairs/Quality Management and Chief Compliance Officer for ViewRay, Inc.; Former Corporate Vice President, Regulatory and Quality Assurance, Siemens Medical Solutions USA, Inc. from 1994-2009; Vice President of Quality Assurance and Regulatory Affairs of Biosearch Medical Products, Inc., from 1992-1994. He previously worked at Johnson & Johnson where he held positions of increasing responsibility in Quality/Regulatory affairs from 1973-1991. Age: 58
Maxwell Borow	Director	Director/Board Member
Biography: Dr. Maxwell Borow, M.D., is Director of Hydromer Inc., since 1990. He is a Medical Doctor, retired Chief of Surgery at Somerset Medical Center (hospital) from 1985-1994; Chief of Vascular Surgery at Somerset Medical Center from 1978-1985. Age: 85
Ursula M. Dyck	Director	Director/Board Member
Biography: Mrs. Ursula M. Dyck is Director of Hydromer Inc., since 1980. Mrs. Dyck served as Director and Vice President of Sales of Biosearch Medical Products from 1991 to 1996. Her experience in the medical device marketing serves the Company in obtaining and selling new products, which are used on the medical devices of the Company’s clients. She has not served as a director of another public company during the past five years. Age: 77
Dieter Heinemann	Director	Director/Board Member
Biography: Mr. Dieter Heinemann is Director of Hydromer, Inc., since 1991. He was a Specialist, Frankfurt [Germany] Stock Exchange until October 31, 2003. With over 30 year of experience in the financial market place Director Heinemann is eminently qualified to render financial advice to the Company. Age: 73
Frederick L. Perl	Director	Director/Board Member
Biography: Dr. Frederick L. Perl, M.D, is Director of Hydromer Inc., since February 2000. He is Attending staff, Somerset Medical Center since 1957; Consulting staff Obstetrics and Gynecology, Carrier Clinic since 1959; affiliated with St. Peter's Medical Center, active staff since 1994; Director of Biosearch Medical Products from December 1996 until February 2000 when appointed to the Board of the Company. Age: 83
Michael F. Ryan	Director	Director/Board Member
Biography: Dr. Michael F. Ryan, Ph.D., is Director of Hydromer Inc., since August 2003. He is President e-Clinical Mentor since 2000 and Consultant for Medical/Marketing Decisions since 2000; Vice-President Internal Medicine, Quintiles Americas 1997-1999. Age: 68
George A. Ziets	Director	Director/Board Member
Biography: Mr. George A. Ziets is Director of Hydromer Inc., since August 2009. He is Vice President of R&D/Product Development, HK Insights from 2002 to present. Previously Executive Director of Johnson and Johnson from 1983-1990; Vice President of Research and Development at Maybelline from 1990-1996; Executive Vice President, Bath and Body Works from 1996-2002. Age: 65

Executives

Name	Title	Function
Manfred F. Dyck	Chairman of the Board, President, Chief Executive Officer	Chief Executive Officer
Biography: Mr. Manfred F. Dyck is Chairman of the Board, President, Chief Executive Officer of Hydromer Inc. He has been Chairman of the Board of the Company since June 1983 and Chief Executive of the Company since August of 1989; Director of Biosearch Medical Products Inc., from 1975 until 2000 when it was acquired by the Company; Director of the Company since 1980. Age: 76 Education: University of Miami, doctorate (Chemistry And Physiology) University of Miami, graduate :$269,100 Compensation Currency: USD
Martin C. Dyck	Executive Vice President - Operations; President of Biosearch Medical Products	Operations Executive
Biography: Mr. Martin C. Dyck is Executive Vice President - Operations of Hydromer Inc., and President of Biosearch Medical Products, a subsidiary of Hydromer, INC. He was previously Vice-President of Operations since February 2000 when the Company purchased Biosearch Medical Products. Mr. Dyck has been President of Biosearch since 1998, a position which he still maintains. Mr. Dyck has been employed by Biosearch since 1986 and has served in various capacities including Director of New Product Development, where he developed several new medical devices and authored six FDA 510(k) pre-market submissions. After becoming President of Biosearch in 1998, Mr. Dyck changed the focus of Biosearch to become a contract medical coatings service provider using proprietary technology unique to Biosearch. Age: 49 Education: Lehigh University, BS (Finance) Somerset County Community College, AS Compensation/Salary:$162,000 Compensation Currency: USD
Enrico Lomedico	Manager-Shipping	Operations Executive
Robert J. Moravsik View Email	Senior Vice President, General Counsel, Secretary	Company Secretary
Biography: Mr. Robert J. Moravsik, J.D., is Senior Vice President, General Counsel, Secretary of Hydromer Inc., since February 2000. He was Vice-President and General Counsel since April 1998.He also serves in the same capacity for Biosearch Medical Products, Inc. (a wholly owned subsidiary as of February 2000) since 1987. Prior to this he was Vice-President and General Counsel to Fisher Stevens, Inc., a subsidiary of the Bureau of National Affairs. Mr. Moravsik is admitted to practice in the states of New Jersey and New York, the Federal District Court of New Jersey and the United States Supreme Court. He holds a B.S. in Aerospace Engineering, an M.S. in Computer Science and a Doctorate in Law. Age: 68 Education: Stevens Institute of Technology, Masters (Computer Science) Tri-State University, BS (Aerospace Engineering) Seton Hall University, Doctorate of Law Compensation/Salary:$135,092 Compensation Currency: USD
Robert Y. Lee	Chief Financial Officer, Vice President - Finance, Treasurer	Finance Executive
Biography: Mr. Robert Y. Lee, CPA, MBA, is Chief Financial Officer, Vice President - Finance, Treasurer of Hydromer Inc., since June 2001. He earned a MBA in Finance and International Business, and a Bachelors of Science in Accounting and Information Systems, both from New York University's Stern School of Business. His professional experience includes tenure with the New York office of Coopers and Lybrand (currently Price-Waterhouse Coopers) in their Emerging Business Group, the Bristol Myers Squibb Internal Auditing group, ASARCO's Southern Peru Copper Corporation, now Southern Copper Corporation part of Grupo Mexico, and Citigroup. Age: 45 Education: New York University, MBA (Finance and International Business) New York University, BS (Accounting) Compensation/Salary:$147,000 Compensation Currency: USD
John Konar	Vice President - Quality Assurance and Director - Human Resources	Human Resources Executive
Biography: Mr. John Konar is Vice President - Quality Assurance and Director - Human Resources of Hydromer Inc. He has been the Vice President of Quality Assurance since February 2004 and Director of Human Resources since 1996 (with Biosearch Medical Products, Inc. before its acquisition by the Company in 2000, and with both companies thereafter). Since joining Biosearch in 1986, Mr. Konar was Director of Sales from 1996 until 2000, Director of QA from 1998 to 2004, until promoted to VP of QA, and Director of Manufacturing of Biosearch from 2000-2001. Age: 62 Compensation/Salary:$106,646 Compensation Currency: USD
Rainer Gruening View Email	Vice President - Intellecutal Property, T-HEXX Int'l Sales	Sales Executive
Biography: Dr. Rainer Gruening, Ph.D., is Vice President - Intellecutal Property, T-HEXX Int'l Sales of Hydromer Inc. Mr. Gruening has been a Vice President since June 2001. Prior to this he held the position of Manager of Regulatory Affairs in AM Cosmetics. Dr. Gruening has his Ph.D. in Chemistry from the University of Marburg in Germany. He is listed as an inventor on 17 patents and has authored or co-authored 35 publications on the synthesis and formulations of anti-microbial polymeric coatings, cosmetics, adhesives and marine anti-fouling products. With a Ph.D. in Chemistry from the University of Marburg in Germany, his background includes service with Bayer AG/Deutsche Solvay Werke, Troy, G+G International and AM Cosmetics in areas including international regulatory affairs, coatings technology and anti-microbials. Mr. Gruening authored and/or co-authored 17 patents and 35 publications on synthesis and formulation of anti-microbials for paint and coatings, cosmetics, personal care products, medical coatings, adhesives, marine anti-fouling and metal working fluids and developed dossiers, safety assessments and GMP documentation. Additionally, he implemented FDA/CTFA, European Biocide and Japanese compliance requirements for raw materials and formulation restrictions. Age: 68 Education: Philipps-Universitaet Marburg, PHD (Chemistry) Compensation/Salary:$140,000 Compensation Currency: USD
Joan Newman	Customer Service	Sales Executive
Petia Tzatzeva View Email	Technical Representative	Engineering/Technical Executive
John Carnall	Purchasing Agent	Purchasing Executive
Jim Sullivan	Manager-Purchasing	Purchasing Executive
Sheri Nadri	Cosmetics Manager	Other

Significant Developments

Hydromer, Inc. Enters Into Exclusive Supply And Support Agreement On Anti-Frost Freezer Door Coating

Jul 18, 2012

Hydromer, Inc. announced that it has entered into a worldwide exclusive Supply and Support Agreement with a international glass company. Under the terms of this exclusivity agreement, Hydromer will supply its Anti-Frost Coating for use on freezer doors to a international glass manufacturer.

Hydromer, Inc. Enters Into Strategic Development Agreement With N8 Medical Inc. For New Class Of Antimicrobial

Jun 28, 2012

Hydromer, Inc. and N8 Medical, Inc. announced that they have entered into a Supply and Support Agreement. Under the terms of this agreement, both parties will work together to jointly create and commercialize new antimicrobial coatings for the medical device market. The parties seek to capitalize on Hydromer's leadership in medical grade polymeric coating technology in combination with N8 Medical's novel class of compounds known as Ceragenins or CSAs. Ceragenins are patented synthetic peptidomimetic compounds licensed from Brigham Young University by N8 Medical that mimic the polyfunctional and broad spectrum activity of a key component of the human innate immune system. This new Ceragenin technology is targeted at combating hospital-acquired infections (HAIs).

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Updated Normal 30-Jun-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Sales	5.5	6.2	7.8	8.0	8.1
Revenue	5.5	6.2	7.8	8.0	8.1
Total Revenue	5.5	6.2	7.8	8.0	8.1
Cost of Revenue	1.6	2.4	3.2	3.0	3.1
Cost of Revenue, Total	1.6	2.4	3.2	3.0	3.1
Gross Profit	3.9	3.8	4.6	5.0	5.0
Labor & Related Expense	-	-	-	0.0	0.1
Total Selling/General/Administrative Expenses	-	-	-	0.0	0.1
Impairment-Assets Held for Use	-	-	-	-	0.0
Loss (Gain) on Sale of Assets - Operating	0.0	-0.3	-1.3	0.0	-
Unusual Expense (Income)	0.0	-0.3	-1.3	0.0	0.0
Other Operating Expense	4.6	5.0	4.9	4.6	5.0
Other, Net	0.2	0.2	0.2	0.2	0.2
Other Operating Expenses, Total	4.8	5.2	5.2	4.8	5.1
Total Operating Expense	6.4	7.2	7.1	7.8	8.3
Operating Income	-0.9	-1.0	0.7	0.2	-0.2
Income Before Tax	-0.9	-1.0	0.7	0.2	-0.2
Total Income Tax	-0.3	-0.5	0.2	0.0	-0.1
Income After Tax	-0.6	-0.6	0.5	0.2	-0.1
Net Income Before Extraord Items	-0.6	-0.6	0.5	0.2	-0.1
Net Income	-0.6	-0.6	0.5	0.2	-0.1
Income Available to Common Excl Extraord Items	-0.6	-0.6	0.5	0.2	-0.1
Income Available to Common Incl Extraord Items	-0.6	-0.6	0.5	0.2	-0.1
Basic/Primary Weighted Average Shares	4.8	4.8	4.8	4.7	4.7
Basic EPS Excl Extraord Items	-0.12	-0.12	0.11	0.04	-0.02
Basic/Primary EPS Incl Extraord Items	-0.12	-0.12	0.11	0.04	-0.02
Dilution Adjustment	0.0	0.0	-	-	0.0
Diluted Net Income	-0.6	-0.6	0.5	0.2	-0.1
Diluted Weighted Average Shares	4.8	4.8	4.8	4.8	4.7
Diluted EPS Excl Extraord Items	-0.12	-0.12	0.11	0.04	-0.02
Diluted EPS Incl Extraord Items	-0.12	-0.12	0.11	0.04	-0.02
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Depreciation, Supplemental	0.2	0.2	0.2	0.2	0.2
Total Special Items	0.0	-0.3	-1.3	0.0	0.0
Normalized Income Before Tax	-0.9	-1.4	-0.6	0.2	-0.2
Effect of Special Items on Income Taxes	0.0	-0.1	-0.5	0.0	0.0
Inc Tax Ex Impact of Sp Items	-0.3	-0.6	-0.3	0.0	-0.1
Normalized Income After Tax	-0.6	-0.8	-0.3	0.2	-0.1
Normalized Inc. Avail to Com.	-0.6	-0.8	-0.3	0.2	-0.1
Basic Normalized EPS	-0.12	-0.16	-0.07	0.04	-0.02
Diluted Normalized EPS	-0.12	-0.16	-0.07	0.04	-0.02
Amort of Intangibles, Supplemental	0.2	0.2	0.2	0.2	0.2
Advertising Expense, Supplemental	0.1	0.0	0.1	0.0	0.0
Research & Development Exp, Supplemental	0.7	0.8	0.9	0.8	1.1
Normalized EBIT	-0.9	-1.4	-0.6	0.2	-0.2
Normalized EBITDA	-0.5	-0.9	-0.1	0.6	0.2
Current Tax - Domestic	0.0	0.0	0.1	0.0	0.0
Current Tax - Local	0.0	0.0	0.0	0.0	0.0
Current Tax - Total	0.0	0.0	0.1	0.0	0.0
Deferred Tax - Domestic	-0.3	-0.4	0.2	0.0	-0.1
Deferred Tax - Local	0.0	-0.1	-0.1	0.0	0.0
Deferred Tax - Total	-0.3	-0.5	0.1	0.0	-0.1
Income Tax - Total	-0.3	-0.5	0.2	0.0	-0.1

Annual Balance Sheet

Financials in: USD (mil)

Financial Glossary

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Reclassified Normal 30-Jun-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash & Equivalents	0.5	0.8	1.6	0.1	0.1
Short Term Investments	0.1	0.4	0.5	0.0	-
Cash and Short Term Investments	0.6	1.3	2.0	0.1	0.1
Accounts Receivable - Trade, Gross	0.8	1.0	1.1	1.2	1.2
Provision for Doubtful Accounts	0.0	0.0	-0.1	-0.1	-0.1
Trade Accounts Receivable - Net	0.8	0.9	1.1	1.1	1.1
Other Receivables	-	-	-	-	0.0
Total Receivables, Net	0.8	0.9	1.1	1.1	1.1
Inventories - Finished Goods	0.2	0.1	0.1	0.4	0.3
Inventories - Work In Progress	0.0	0.0	0.2	0.3	0.2
Inventories - Raw Materials	0.2	0.1	0.3	0.4	0.4
Total Inventory	0.4	0.2	0.6	1.0	1.0
Prepaid Expenses	0.2	0.2	0.2	0.2	0.1
Deferred Income Tax - Current Asset	0.1	0.0	0.0	0.0	0.0
Other Current Assets	0.0	0.0	0.0	0.0	0.0
Other Current Assets, Total	0.1	0.0	0.0	0.0	0.0
Total Current Assets	2.1	2.7	3.9	2.4	2.4
Buildings	2.4	2.4	2.3	2.3	2.2
Land/Improvements	0.5	0.5	0.5	0.5	0.5
Machinery/Equipment	2.5	2.4	4.5	4.7	4.6
Property/Plant/Equipment - Gross	5.3	5.2	7.3	7.5	7.2
Accumulated Depreciation	-2.5	-2.2	-4.2	-4.2	-3.9
Property/Plant/Equipment - Net	2.9	3.0	3.1	3.3	3.3
Intangibles - Gross	1.5	1.4	1.3	1.3	1.3
Accumulated Intangible Amortization	-0.6	-0.5	-0.5	-0.5	-0.4
Intangibles, Net	0.8	0.8	0.7	0.8	0.9
Deferred Income Tax - Long Term Asset	1.2	1.0	0.5	0.6	0.6
Other Long Term Assets	-	-	-	-	0.0
Other Long Term Assets, Total	1.2	1.0	0.5	0.6	0.6
Total Assets	7.0	7.5	8.3	7.2	7.2
Accounts Payable	0.4	0.3	0.4	0.6	0.5
Accrued Expenses	0.3	0.3	0.3	0.3	0.4
Notes Payable/Short Term Debt	0.0	0.0	0.0	0.3	0.5
Current Portion - Long Term Debt/Capital Leases	0.1	0.1	0.1	0.2	0.2
Customer Advances	0.1	0.1	0.1	0.1	0.0
Income Taxes Payable	-	0.0	0.1	0.0	0.0
Other Current liabilities, Total	0.1	0.1	0.2	0.1	0.0
Total Current Liabilities	0.9	0.7	0.9	1.6	1.7
Long Term Debt	2.7	2.8	2.8	1.6	1.9
Capital Lease Obligations	0.0	0.0	0.1	0.1	0.0
Total Long Term Debt	2.7	2.8	2.9	1.7	1.9
Total Debt	2.8	2.9	2.9	2.2	2.6
Deferred Income Tax - LT Liability	0.3	0.3	0.3	0.3	0.3
Deferred Income Tax	0.3	0.3	0.3	0.3	0.3
Other Long Term Liabilities	0.1	0.2	0.2	0.0	0.1
Other Liabilities, Total	0.1	0.2	0.2	0.0	0.1
Total Liabilities	4.1	4.0	4.3	3.6	3.9
Common Stock	3.7	3.7	3.7	3.7	3.6
Common Stock	3.7	3.7	3.7	3.7	3.6
Additional Paid-In Capital	0.6	0.6	0.6	0.6	0.6
Retained Earnings (Accumulated Deficit)	-1.4	-0.8	-0.3	-0.8	-1.0
Treasury Stock - Common	0.0	0.0	0.0	0.0	0.0
Total Equity	2.9	3.5	4.1	3.6	3.3
Total Liabilities & Shareholders’ Equity	7.0	7.5	8.3	7.2	7.2
Shares Outstanding - Common Stock Primary Issue	4.8	4.8	4.8	4.8	4.7
Total Common Shares Outstanding	4.8	4.8	4.8	4.8	4.7
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Employees	43	48	73	73	70
Number of Common Shareholders	500	500	600	600	600
Accumulated Intangible Amort, Suppl.	0.6	0.5	0.5	0.5	0.4
Deferred Revenue - Current	0.1	0.1	0.1	0.1	0.0
Deferred Revenue - Long Term	0.1	0.2	0.2	0.0	0.1
Total Long Term Debt, Supplemental	2.8	2.8	2.9	1.9	2.1
Long Term Debt Maturing within 1 Year	0.1	0.0	0.0	0.2	0.2
Long Term Debt Maturing in Year 2	0.1	0.1	0.0	0.2	0.2
Long Term Debt Maturing in Year 3	0.1	0.1	0.1	0.3	0.2
Long Term Debt Maturing in Year 4	0.1	0.1	0.1	0.3	0.3
Long Term Debt Maturing in Year 5	0.1	0.1	0.1	0.3	0.3
Long Term Debt Maturing in 2-3 Years	0.1	0.1	0.1	0.5	0.5
Long Term Debt Maturing in 4-5 Years	0.1	0.1	0.1	0.6	0.5
Long Term Debt Matur. in Year 6 & Beyond	2.5	2.5	2.6	0.6	0.9
Total Capital Leases, Supplemental	0.0	0.1	0.1	0.1	-
Capital Lease Payments Due in Year 1	0.0	0.0	0.0	0.0	-
Capital Lease Payments Due in Year 2	0.0	0.0	0.0	0.0	-
Capital Lease Payments Due in Year 3	-	0.0	0.0	0.0	-
Capital Lease Payments Due in Year 4	-	-	0.0	0.0	-
Capital Lease Payments Due in Year 5	-	-	-	0.0	-
Capital Lease Payments Due in 2-3 Years	0.0	0.0	0.0	0.0	-
Capital Lease Payments Due in 4-5 Years	-	-	0.0	0.0	-
Cap. Lease Pymts. Due in Year 6 & Beyond	-	-	-	0.0	-

Annual Cash Flows

Financials in: USD (mil)

Financial Glossary

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Updated Normal 30-Jun-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income/Starting Line	-0.6	-0.6	0.5	0.2	-0.1
Depreciation	0.4	0.4	0.5	0.4	0.4
Depreciation/Depletion	0.4	0.4	0.5	0.4	0.4
Deferred Taxes	-0.3	-0.4	0.2	0.0	-0.1
Unusual Items	0.0	-0.3	-1.1	0.1	0.0
Other Non-Cash Items	-	-	-	0.0	0.1
Non-Cash Items	0.0	-0.3	-1.1	0.1	0.1
Accounts Receivable	0.1	0.1	0.0	0.0	0.1
Inventories	-0.2	0.1	0.2	-0.1	0.0
Prepaid Expenses	0.0	0.0	-0.1	0.0	0.0
Other Assets	0.0	0.0	0.0	0.0	0.2
Payable/Accrued	0.1	-0.1	-0.2	0.0	-0.1
Taxes Payable	0.0	-0.1	0.0	0.0	0.1
Other Liabilities	0.0	0.0	0.1	0.0	-0.1
Changes in Working Capital	0.1	0.0	0.0	0.0	0.2
Cash from Operating Activities	-0.4	-1.0	0.1	0.8	0.4
Purchase of Fixed Assets	-0.1	-0.2	-0.2	-0.2	-0.2
Purchase/Acquisition of Intangibles	-0.2	-0.3	-0.3	-0.2	-0.2
Capital Expenditures	-0.3	-0.5	-0.5	-0.4	-0.4
Sale/Maturity of Investment	0.4	1.5	1.6	0.0	0.0
Purchase of Investments	-0.1	-0.7	-0.5	0.0	0.0
Other Investing Cash Flow Items, Total	0.4	0.8	1.2	0.0	0.0
Cash from Investing Activities	0.1	0.3	0.7	-0.4	-0.4
Sale/Issuance of Common	-	-	0.0	0.1	0.0
Common Stock, Net	-	-	0.0	0.1	0.0
Issuance (Retirement) of Stock, Net	-	-	0.0	0.1	0.0
Long Term Debt Issued	-	0.0	2.9	0.0	-
Long Term Debt Reduction	-0.1	0.0	-1.9	-0.2	-0.2
Long Term Debt, Net	-0.1	0.0	0.7	-0.4	-0.3
Issuance (Retirement) of Debt, Net	-0.1	0.0	0.7	-0.4	-0.3
Cash from Financing Activities	-0.1	0.0	0.7	-0.4	-0.3
Net Change in Cash	-0.3	-0.7	1.5	0.0	-0.3
Net Cash - Beginning Balance	0.8	1.6	0.1	0.1	0.4
Net Cash - Ending Balance	0.5	0.8	1.6	0.1	0.1
Cash Interest Paid	0.2	0.2	0.2	0.2	0.2
Cash Taxes Paid	0.0	0.1	0.0	0.0	0.0

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Updated Normal 30-Jun-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Sale of products	3.1	3.8	4.4	4.7	4.9
Service revenues	1.4	1.4	2.1	1.8	1.5
Royalties and Contract Revenues	1.0	1.0	1.2	1.6	1.6
Total Revenue	5.5	6.2	7.8	8.0	8.1
Cost of Sales	1.6	2.4	3.2	3.0	3.1
Operating Expenses	4.6	5.0	4.9	4.6	5.0
Other Expenses, net	0.2	0.2	0.2	0.2	0.2
Stock Based Compensation	-	-	-	0.0	0.1
Impairment of Goodwill	-	-	-	-	0.0
Gain from Sale of Assets	0.0	-0.3	-1.3	0.0	-
Total Operating Expense	6.4	7.2	7.1	7.8	8.3
Net Income Before Taxes	-0.9	-1.0	0.7	0.2	-0.2
Provision for Income Taxes	-0.3	-0.5	0.2	0.0	-0.1
Net Income After Taxes	-0.6	-0.6	0.5	0.2	-0.1
Net Income Before Extra. Items	-0.6	-0.6	0.5	0.2	-0.1
Net Income	-0.6	-0.6	0.5	0.2	-0.1
Income Available to Com Excl ExtraOrd	-0.6	-0.6	0.5	0.2	-0.1
Income Available to Com Incl ExtraOrd	-0.6	-0.6	0.5	0.2	-0.1
Basic Weighted Average Shares	4.8	4.8	4.8	4.7	4.7
Basic EPS Excluding ExtraOrdinary Items	-0.12	-0.12	0.11	0.04	-0.02
Basic EPS Including ExtraOrdinary Item	-0.12	-0.12	0.11	0.04	-0.02
Dilution Adjustment	0.0	0.0	-	-	0.0
Diluted Net Income	-0.6	-0.6	0.5	0.2	-0.1
Diluted Weighted Average Shares	4.8	4.8	4.8	4.8	4.7
Diluted EPS Excluding ExtraOrd Items	-0.12	-0.12	0.11	0.04	-0.02
Diluted EPS Including ExtraOrd Items	-0.12	-0.12	0.11	0.04	-0.02
DPS-Common Stock	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	-0.9	-1.4	-0.6	0.2	-0.2
Inc Tax Ex Impact of Sp Items	-0.3	-0.6	-0.3	0.0	-0.1
Normalized Income After Taxes	-0.6	-0.8	-0.3	0.2	-0.1
Normalized Inc. Avail to Com.	-0.6	-0.8	-0.3	0.2	-0.1
Basic Normalized EPS	-0.12	-0.16	-0.07	0.04	-0.02
Diluted Normalized EPS	-0.12	-0.16	-0.07	0.04	-0.02
Research & Development Exp	0.7	0.8	0.9	0.8	1.1
Advertising Expenses	0.1	0.0	0.1	0.0	0.0
Depreciation	0.2	0.2	0.2	0.2	0.2
Amort of Intangibles	0.2	0.2	0.2	0.2	0.2
Current Tax - Federal	0.0	0.0	0.1	0.0	0.0
Current Tax - State	0.0	0.0	0.0	0.0	0.0
Current Tax - Total	0.0	0.0	0.1	0.0	0.0
Deferred Tax - Federal	-0.3	-0.4	0.2	0.0	-0.1
Deferred Tax - State	0.0	-0.1	-0.1	0.0	0.0
Deferred Tax - Total	-0.3	-0.5	0.1	0.0	-0.1
Income Tax - Total	-0.3	-0.5	0.2	0.0	-0.1

Annual Balance Sheet

Financials in: USD (mil)

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Reclassified Normal 30-Jun-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash/Equivalents	0.5	0.8	1.6	0.1	0.1
Short-term investments	0.1	0.4	0.5	0.0	-
Accounts Receivable	0.8	1.0	1.1	1.2	1.2
Doubtful Account	0.0	0.0	-0.1	-0.1	-0.1
Finished Goods	0.2	0.1	0.1	0.4	0.3
Work-in-Progress	0.0	0.0	0.2	0.3	0.2
Raw Materials	0.2	0.1	0.3	0.4	0.4
Prepaid Expenses	0.2	0.2	0.2	0.2	0.1
Deferred Tax Asset	0.1	0.0	0.0	0.0	0.0
Income Tax Refund Receivable	-	-	-	-	0.0
Other	0.0	0.0	0.0	0.0	0.0
Total Current Assets	2.1	2.7	3.9	2.4	2.4
Land	0.5	0.5	0.5	0.5	0.5
Building	2.3	2.3	2.2	2.2	2.2
Machinery/Equipment	2.3	2.2	4.0	4.2	4.0
Leasehold Improvment	0.1	0.1	0.1	0.1	0.0
Furniture/Fixtures	0.2	0.2	0.6	0.6	0.6
Depreciation	-2.5	-2.2	-4.2	-4.2	-3.9
Deferred tax asset, non-current	1.2	1.0	0.5	0.6	0.6
Patents	1.4	1.4	1.3	1.2	1.2
Trademarks	0.1	0.1	0.0	0.1	0.1
Adjustment	-0.1	-0.1	-	-	-
Accumulated Amortization	-0.6	-0.5	-0.5	-0.5	-0.4
Accumulated Amortization impairement	-	0.0	-0.1	-	-
Other Assets	-	-	-	-	0.0
Total Assets	7.0	7.5	8.3	7.2	7.2
Accounts Payable	0.4	0.3	0.4	0.6	0.5
Short Term Borrowings	-	-	0.0	0.3	0.5
Accrued Expenses	0.3	0.3	0.3	0.3	0.4
Current Portion of Capital Lease	0.0	0.0	0.0	0.0	0.0
Deferred Revenue	0.1	0.1	0.1	0.1	0.0
Current Portion of Mortgage	0.1	0.0	0.0	0.2	0.2
Income Tax Payable	-	0.0	0.1	0.0	0.0
Total Current Liabilities	0.9	0.7	0.9	1.6	1.7
Long Term Portion of Capital Lease	0.0	0.0	0.1	0.1	0.0
Mortgage Payable	2.7	2.8	2.8	1.6	1.9
Total Long Term Debt	2.7	2.8	2.9	1.7	1.9
Deferred Taxes	0.3	0.3	0.3	0.3	0.3
Deferred Revenue	0.1	0.2	0.2	0.0	0.1
Total Liabilities	4.1	4.0	4.3	3.6	3.9
Common Stock	3.7	3.7	3.7	3.7	3.6
Contrib. Capital	0.6	0.6	0.6	0.6	0.6
Accumulated Deficit	-1.4	-0.8	-0.3	-0.8	-1.0
Treasury Stock	0.0	0.0	0.0	0.0	0.0
Total Equity	2.9	3.5	4.1	3.6	3.3
Total Liabilities & Shareholders' Equity	7.0	7.5	8.3	7.2	7.2
S/O-Common Stock	4.8	4.8	4.8	4.8	4.7
Total Common Shares Outstanding	4.8	4.8	4.8	4.8	4.7
T/S-Common Stock	0.0	0.0	0.0	0.0	0.0
Deferred Revenue - Current	0.1	0.1	0.1	0.1	0.0
Deferred Revenue - Long Term	0.1	0.2	0.2	0.0	0.1
Accumulated Intangibles Amortization	0.6	0.5	0.5	0.5	0.4
Full-Time Employees	43	48	73	73	70
Number of Common Shareholders	500	500	600	600	600
Long Term Debt Maturing within 1 Year	0.1	0.0	0.0	0.2	0.2
Long Term Debt Maturing within 2 Years	0.1	0.1	0.0	0.2	0.2
Long Term Debt Maturing within 3 Years	0.1	0.1	0.1	0.3	0.2
Long Term Debt Maturing within 4 Years	0.1	0.1	0.1	0.3	0.3
Long Term Debt Maturing within 5 Years	0.1	0.1	0.1	0.3	0.3
Long Term Debt Remaining Maturities	2.5	2.5	2.6	0.6	0.9
Total Long Term Debt, Supplemental	2.8	2.8	2.9	1.9	2.1
Capital Leases Maturing within 1 Year	0.0	0.0	0.0	0.0	-
Capital Leases Maturing within 2 Years	0.0	0.0	0.0	0.0	-
Capital Leases Maturing within 3 Years	-	0.0	0.0	0.0	-
Capital Leases Maturing within 4 Years	-	-	0.0	0.0	-
Capital Leases Maturing within 5 Years	-	-	-	0.0	-
Capital Leases Remaining Maturities	-	-	-	0.0	-
Total Capital Leases	0.0	0.1	0.1	0.1	-

Annual Cash Flows

Financials in: USD (mil)

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Updated Normal 30-Jun-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income	-0.6	-0.6	0.5	0.2	-0.1
Depreciation	0.4	0.4	0.5	0.4	0.4
Gain from the Sale of Product Lines	0.0	-0.3	-1.3	0.0	-
Impairment of Goodwill	-	0.0	0.2	0.1	0.0
Gain on Asset Sale	-	0.0	0.1	0.0	-
Deferred Tax Asset	-0.3	-0.4	0.2	0.0	-0.1
Trade Receivables	0.1	0.1	0.0	0.0	0.1
Inventory	-0.2	0.1	0.2	-0.1	0.0
Prepaid Expenses	0.0	0.0	-0.1	0.0	0.0
Other Assets	0.0	0.0	0.0	0.0	0.2
Payable/Accrued	0.1	-0.1	-0.2	0.0	-0.1
Deferred Revenue	0.0	0.0	0.1	0.0	-0.1
Income Taxes Payable	0.0	-0.1	0.0	0.0	0.1
Stock Based Compensation	-	-	-	0.0	0.1
Cash from Operating Activities	-0.4	-1.0	0.1	0.8	0.4
Capital Expenditures	-0.1	-0.2	-0.2	-0.2	-0.2
Purchase of Intangibles	-0.2	-0.3	-0.3	-0.2	-0.2
Sale of Securities	-	0.8	1.6	0.0	0.0
Maturity of short-term investments	0.4	0.7	0.0	-	-
Purchase of Securities	-0.1	-0.7	-0.5	0.0	0.0
Cash from Investing Activities	0.1	0.3	0.7	-0.4	-0.4
Credit Line Borrowing	-	0.0	-0.3	-0.2	-0.1
Repayment Of Long Term Borrowings	-0.1	0.0	-1.9	-0.2	-0.2
Issuance of Common Stock	-	-	0.0	0.1	0.0
New Long-term Borrowings	-	0.0	2.9	0.0	-
Cash from Financing Activities	-0.1	0.0	0.7	-0.4	-0.3
Net Change in Cash	-0.3	-0.7	1.5	0.0	-0.3
Net Cash - Beginning Balance	0.8	1.6	0.1	0.1	0.4
Net Cash - Ending Balance	0.5	0.8	1.6	0.1	0.1
Cash Interest Paid	0.2	0.2	0.2	0.2	0.2
Cash Taxes Paid	0.0	0.1	0.0	0.0	0.0

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key Indicators USD (mil)
Â	Quarter Ending 31-Mar-2012	Quarter Ending Yr Ago	Annual Year End 30-Jun-2011	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue	1.6	1.97%	5.5	-11.06%	-11.70%	-6.86%
Operating Income	0.0	-	-0.9	-	-	-
Income Available to Common Excl Extraord Items	0.0	-	-0.6	-	-	-
Basic EPS Excl Extraord Items	0.00	-	-0.12	-	-	-
Capital Expenditures	0.2	-35.51%	0.3	-44.99%	-11.55%	-11.35%
Cash from Operating Activities	0.2	-	-0.4	-	-	-
Free Cash Flow	0.0	-	-0.7	-	-	-
Total Assets	6.7	-5.61%	7.0	-7.14%	-0.84%	-2.18%
Total Liabilities	3.9	-3.89%	4.1	1.08%	4.08%	-1.81%
Total Long Term Debt	2.7	-2.50%	2.7	-2.62%	16.81%	5.46%
Employees	-	-	43	-10.42%	-16.17%	-12.74%
Total Common Shares Outstanding	4.8	0.00%	4.8	0.00%	0.00%	0.55%
Market Cap	5.0	50.72%	3.1	-34.34%	-6.69%	-7.57%

Key Ratios
Â	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
Profitability
Gross Margin	71.16%	61.21%	58.80%	62.00%	61.25%
Operating Margin	-16.47%	-16.47%	8.82%	2.38%	-2.56%
Pretax Margin	-16.47%	-16.47%	8.82%	2.38%	-2.56%
Net Profit Margin	-10.54%	-9.02%	6.49%	2.22%	-1.31%
Financial Strength
Current Ratio	2.30	3.67	4.18	1.53	1.42
Long Term Debt/Equity	0.93	0.80	0.70	0.48	0.57
Total Debt/Equity	0.96	0.82	0.72	0.63	0.79
Management Effectiveness
Return on Assets	-8.00%	-7.05%	6.49%	2.48%	-1.41%
Return on Equity	-18.04%	-14.75%	13.16%	5.17%	-3.18%
Efficiency
Receivables Turnover	6.51	6.27	7.18	7.21	6.72
Inventory Turnover	4.59	5.56	3.90	3.07	3.23
Asset Turnover	0.76	0.78	1.00	1.12	1.08

Market Valuation USD (mil)
Enterprise Value	8.2	.	Price/Sales (TTM)	1.01
Enterprise Value/Revenue (TTM)	1.38	.	Price/Book (MRQ)	2.16
Enterprise Value/EBITDA (TTM)	221.93	.	Market Cap	6.0

Ratio Comparisons

Traded: Over The Counter: HYDI	Financials in: USD (actual units)
Industry: Chemical Manufacturing	As of 31-Mar-2012
Sector: Basic Materials

	Company	Industry	Sector	S&P 500
Valuation Ratios
P/E Excluding Extraordinary (TTM)	-	23.47	24.91	19.68
P/E High Excluding Extraordinary - Last 5 Yrs	21.42	29.37	40.00	32.79
P/E Low Excluding Extraordinary - Last 5 Yrs	6.17	11.37	8.69	10.71
Beta	-	1.21	1.47	1.00
Price/Revenue (TTM)	1.01	2.41	2.38	2.57
Price/Book (MRQ)	2.16	4.13	3.90	3.67
Price to Tangible Book (MRQ)	3.00	7.79	5.81	5.21
Price to Cash Flow Per Share (TTM)	28.28	14.85	13.98	14.22
Price to Free Cash Flow Per Share (TTM)	-	40.81	37.21	26.26
Dividends
Dividend Yield	-	1.82%	1.75%	2.26%
Dividend Per Share - 5 Yr Avg	0.00	2.13	2.50	1.99
Dividend 5 Yr Growth	-	10.42%	1.06%	0.08%
Payout Ratio (TTM)	-	31.59%	29.68%	25.98%
Growth Rates (%)
Revenue (MRQ) vs Qtr 1 Yr Ago	1.97%	20.41%	20.15%	15.58%
Revenue (TTM) vs TTM 1 Yr Ago	5.56%	15.77%	23.47%	17.69%
Revenue 5 Yr Growth	-6.86%	6.26%	7.38%	8.97%
EPS (MRQ) vs Qtr 1 Yr Ago	87.39%	2.09%	13.63%	19.49%
EPS (TTM) vs TTM 1 Yr Ago	53.50%	12.44%	42.74%	32.55%
EPS 5 Yr Growth	-	19.42%	8.05%	9.86%
Capital Spending 5 Yr Growth	-11.35%	11.74%	9.93%	-2.04%
Financial Strength
Quick Ratio (MRQ)	1.89	1.35	1.78	1.24
Current Ratio (MRQ)	2.17	2.18	2.73	1.79
LT Debt/Equity (MRQ)	0.97	0.76	0.81	0.64
Total Debt/Equity (MRQ)	0.99	0.82	0.88	0.73
Interest Coverage (TTM)	-	13.67	11.21	13.80
Profitability Ratios (%)
Gross Margin (TTM)	71.81%	33.98%	32.32%	45.21%
Gross Margin - 5 Yr Avg	62.41%	32.62%	31.54%	44.91%
EBITD Margin (TTM)	0.62%	19.75%	22.23%	24.43%
EBITD Margin - 5 Yr Avg	2.58%	17.18%	18.43%	22.84%
Operating Margin (TTM)	-6.97%	14.67%	16.99%	20.63%
Operating Margin - 5 Yr Avg	-3.55%	13.24%	13.64%	18.28%
Pretax Margin (TTM)	-6.97%	14.52%	15.86%	17.95%
Pretax Margin - 5 Yr Avg	-3.55%	12.15%	12.57%	17.10%
Net Profit Margin (TTM)	-4.04%	10.56%	11.55%	13.65%
Net Profit Margin - 5 Yr Avg	-1.59%	8.73%	8.64%	12.10%
Effective Tax Rate (TTM)	-	27.39%	28.04%	28.45%
Effective Tax rate - 5 Yr Avg	-	27.15%	29.65%	29.92%
Management Effectiveness (%)
Return on Assets (TTM)	-3.46%	8.26%	8.05%	8.54%
Return on Assets - 5 Yr Avg	-1.50%	7.52%	7.49%	8.40%
Return on Investment (TTM)	-3.98%	6.33%	5.86%	7.90%
Return on Investment - 5 Yr Avg	-1.81%	5.79%	5.78%	8.27%
Return on Equity (TTM)	-8.29%	22.07%	18.78%	19.72%
Return on Equity - 5 Yr Avg	-3.21%	19.44%	17.45%	20.06%
Efficiency
Revenue/Employee (TTM)	137,788.60	665,165.50	613,510.56	927,613.77
Net Income/Employee (TTM)	-5,560.47	84,229.57	82,492.56	116,121.92
Receivables Turnover (TTM)	7.82	7.02	8.71	13.25
Inventory Turnover (TTM)	6.09	8.06	8.16	14.53
Asset Turnover (TTM)	0.86	0.80	0.82	0.93

Annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
Financial Strength
Current Ratio	2.30	3.67	4.18	1.53	1.42
Quick/Acid Test Ratio	1.44	3.00	3.29	0.77	0.76
Working Capital	1.2	2.0	3.0	0.8	0.7
Long Term Debt/Equity	0.93	0.80	0.70	0.48	0.57
Total Debt/Equity	0.96	0.82	0.72	0.63	0.79
Long Term Debt/Total Capital	0.48	0.44	0.41	0.29	0.32
Total Debt/Total Capital	0.49	0.45	0.42	0.39	0.44
Payout Ratio	0.00%	0.00%	0.00%	0.00%	0.00%
Effective Tax Rate	-	-	26.46%	6.81%	-
Total Capital	5.7	6.4	7.0	5.8	5.9
Efficiency
Asset Turnover	0.76	0.78	1.00	1.12	1.08
Inventory Turnover	4.59	5.56	3.90	3.07	3.23
Days In Inventory	79.52	65.61	93.65	118.71	113.08
Receivables Turnover	6.51	6.27	7.18	7.21	6.72
Days Receivables Outstanding	56.09	58.26	50.83	50.62	54.34
Revenue/Employee	128,256	129,177	106,192	109,740	115,714
Operating Income/Employee	-21,125	-21,271	9,370	2,616	-2,957
EBITDA/Employee	-11,083	-12,292	15,877	8,575	2,843
Profitability
Gross Margin	71.16%	61.21%	58.80%	62.00%	61.25%
Operating Margin	-16.47%	-16.47%	8.82%	2.38%	-2.56%
EBITDA Margin	-8.64%	-9.52%	14.95%	7.81%	2.46%
EBIT Margin	-16.47%	-16.47%	8.82%	2.38%	-2.56%
Pretax Margin	-16.47%	-16.47%	8.82%	2.38%	-2.56%
Net Profit Margin	-10.54%	-9.02%	6.49%	2.22%	-1.31%
COGS/Revenue	28.84%	38.79%	41.20%	38.00%	38.75%
SG&A Expense/Revenue	-	-	-	0.00%	0.68%
Management Effectiveness
Return on Assets	-8.00%	-7.05%	6.49%	2.48%	-1.41%
Return on Equity	-18.04%	-14.75%	13.16%	5.17%	-3.18%
Valuation
Free Cash Flow/Share	-0.14	-0.32	-0.08	0.07	0.01
Operating Cash Flow/Share	-0.08	-0.20	0.02	0.16	0.09

Current Market Multiples
Market Cap/Earnings (TTM)	-24.95
Market Cap/Equity (MRQ)	2.16
Market Cap/Revenue (TTM)	1.01
Market Cap/EBIT (TTM)	-14.44
Market Cap/EBITDA (TTM)	161.53
Enterprise Value/Earnings (TTM)	-34.28
Enterprise Value/Equity (MRQ)	2.97
Enterprise Value/Revenue (TTM)	1.38
Enterprise Value/EBIT (TTM)	-19.84
Enterprise Value/EBITDA (TTM)	221.93

Stock Report

Stock Snapshot

Traded: Over The Counter: HYDI

As of 29-Jun-2012    US Dollars

Recent Price	$1.25	EPS	$-0.12
52 Week High	$1.25	Price/Sales	1.08
52 Week Low	$0.50	Price/Book	2.03
Avg. Volume (mil)	0.00
Market Value (mil)	$5.97

	Price % Change	Rel S&P 500%
4 Week	8.70%
13 Week	20.19%
52 Week	92.31%
Year to Date	34.41%

2 Year Weekly End Price & Volume

Stock History

Market Cap History
	31-Mar-12	% Chg	31-Dec-11	% Chg	30-Sep-11	% Chg	30-Jun-11	% Chg	31-Mar-11	% Chg
Total Common Shares Outstanding	5	0.0	5	0.0	5	0.0	5	0.0	5	0.0
Market Cap	5.0	11.8	4.4	-6.1	4.7	52.3	3.1	-5.8	3.3	6.2

Yearly Price History
	2012	% Chg	2011	% Chg	2010	% Chg	2009	% Chg	2008	% Chg
High Price	1.25	13.6	1.10	1.9	1.08	-1.8	1.10	-65.6	3.20	18.5
Low Price	0.60	87.5	0.32	0.0	0.32	28.0	0.25	-28.6	0.35	-41.7
Year End Price	1.25	34.4	0.93	43.1	0.65	-3.0	0.67	31.4	0.51	-70.0

Monthly Price History
Price Ending Date	Open	High	Low	Close	Volume
29-Jun-12	1.15	1.25	1.05	1.25	31,752
31-May-12	0.70	1.15	0.60	1.15	17,071
20-Apr-12	0.93	1.10	0.60	1.06	29,800
30-Mar-12	0.70	1.24	0.70	1.04	24,583
16-Feb-12	0.88	1.14	0.88	1.10	50,629
31-Jan-12	0.65	0.93	0.65	0.88	39,884
30-Dec-11	0.55	0.94	0.50	0.93	15,300
30-Nov-11	0.50	0.90	0.50	0.55	19,500
26-Oct-11	0.50	0.94	0.50	0.94	11,484
30-Sep-11	1.05	1.10	0.65	0.99	78,200
31-Aug-11	1.00	1.05	0.85	1.00	95,718
29-Jul-11	0.65	1.01	0.55	1.00	109,934
28-Jun-11	0.34	0.65	0.32	0.65	115,402

Annual Income Statement

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Updated Normal 30-Jun-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Sales	5.5	6.2	7.8	8.0	8.1
Revenue	5.5	6.2	7.8	8.0	8.1
Total Revenue	5.5	6.2	7.8	8.0	8.1
Cost of Revenue	1.6	2.4	3.2	3.0	3.1
Cost of Revenue, Total	1.6	2.4	3.2	3.0	3.1
Gross Profit	3.9	3.8	4.6	5.0	5.0
Labor & Related Expense	-	-	-	0.0	0.1
Total Selling/General/Administrative Expenses	-	-	-	0.0	0.1
Impairment-Assets Held for Use	-	-	-	-	0.0
Loss (Gain) on Sale of Assets - Operating	0.0	-0.3	-1.3	0.0	-
Unusual Expense (Income)	0.0	-0.3	-1.3	0.0	0.0
Other Operating Expense	4.6	5.0	4.9	4.6	5.0
Other, Net	0.2	0.2	0.2	0.2	0.2
Other Operating Expenses, Total	4.8	5.2	5.2	4.8	5.1
Total Operating Expense	6.4	7.2	7.1	7.8	8.3
Operating Income	-0.9	-1.0	0.7	0.2	-0.2
Income Before Tax	-0.9	-1.0	0.7	0.2	-0.2
Total Income Tax	-0.3	-0.5	0.2	0.0	-0.1
Income After Tax	-0.6	-0.6	0.5	0.2	-0.1
Net Income Before Extraord Items	-0.6	-0.6	0.5	0.2	-0.1
Net Income	-0.6	-0.6	0.5	0.2	-0.1
Income Available to Common Excl Extraord Items	-0.6	-0.6	0.5	0.2	-0.1
Income Available to Common Incl Extraord Items	-0.6	-0.6	0.5	0.2	-0.1
Basic/Primary Weighted Average Shares	4.8	4.8	4.8	4.7	4.7
Basic EPS Excl Extraord Items	-0.12	-0.12	0.11	0.04	-0.02
Basic/Primary EPS Incl Extraord Items	-0.12	-0.12	0.11	0.04	-0.02
Dilution Adjustment	0.0	0.0	-	-	0.0
Diluted Net Income	-0.6	-0.6	0.5	0.2	-0.1
Diluted Weighted Average Shares	4.8	4.8	4.8	4.8	4.7
Diluted EPS Excl Extraord Items	-0.12	-0.12	0.11	0.04	-0.02
Diluted EPS Incl Extraord Items	-0.12	-0.12	0.11	0.04	-0.02
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Depreciation, Supplemental	0.2	0.2	0.2	0.2	0.2
Total Special Items	0.0	-0.3	-1.3	0.0	0.0
Normalized Income Before Tax	-0.9	-1.4	-0.6	0.2	-0.2
Effect of Special Items on Income Taxes	0.0	-0.1	-0.5	0.0	0.0
Inc Tax Ex Impact of Sp Items	-0.3	-0.6	-0.3	0.0	-0.1
Normalized Income After Tax	-0.6	-0.8	-0.3	0.2	-0.1
Normalized Inc. Avail to Com.	-0.6	-0.8	-0.3	0.2	-0.1
Basic Normalized EPS	-0.12	-0.16	-0.07	0.04	-0.02
Diluted Normalized EPS	-0.12	-0.16	-0.07	0.04	-0.02
Amort of Intangibles, Supplemental	0.2	0.2	0.2	0.2	0.2
Advertising Expense, Supplemental	0.1	0.0	0.1	0.0	0.0
Research & Development Exp, Supplemental	0.7	0.8	0.9	0.8	1.1
Normalized EBIT	-0.9	-1.4	-0.6	0.2	-0.2
Normalized EBITDA	-0.5	-0.9	-0.1	0.6	0.2
Current Tax - Domestic	0.0	0.0	0.1	0.0	0.0
Current Tax - Local	0.0	0.0	0.0	0.0	0.0
Current Tax - Total	0.0	0.0	0.1	0.0	0.0
Deferred Tax - Domestic	-0.3	-0.4	0.2	0.0	-0.1
Deferred Tax - Local	0.0	-0.1	-0.1	0.0	0.0
Deferred Tax - Total	-0.3	-0.5	0.1	0.0	-0.1
Income Tax - Total	-0.3	-0.5	0.2	0.0	-0.1

Interim Income Statement

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
Period Length	3 Months	3 Months	3 Months	3 Months	3 Months
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Net Sales	1.6	1.4	1.4	1.5	1.6
Revenue	1.6	1.4	1.4	1.5	1.6
Total Revenue	1.6	1.4	1.4	1.5	1.6
Cost of Revenue	0.5	0.4	0.4	0.4	0.5
Cost of Revenue, Total	0.5	0.4	0.4	0.4	0.5
Gross Profit	1.1	1.0	1.0	1.1	1.1
Loss (Gain) on Sale of Assets - Operating	-	-	-	0.0	0.0
Unusual Expense (Income)	-	-	-	0.0	0.0
Other Operating Expense	1.1	1.0	1.1	1.2	1.1
Other, Net	0.0	0.1	0.1	0.0	0.1
Other Operating Expenses, Total	1.1	1.1	1.2	1.3	1.2
Total Operating Expense	1.6	1.5	1.6	1.7	1.6
Operating Income	0.0	-0.1	-0.1	-0.2	-0.1
Income Before Tax	0.0	-0.1	-0.1	-0.2	-0.1
Total Income Tax	0.0	0.0	0.0	-0.1	0.0
Income After Tax	0.0	-0.1	-0.1	-0.1	-0.1
Net Income Before Extraord Items	0.0	-0.1	-0.1	-0.1	-0.1
Net Income	0.0	-0.1	-0.1	-0.1	-0.1
Income Available to Common Excl Extraord Items	0.0	-0.1	-0.1	-0.1	-0.1
Income Available to Common Incl Extraord Items	0.0	-0.1	-0.1	-0.1	-0.1
Basic/Primary Weighted Average Shares	4.8	4.8	4.8	4.8	4.8
Basic EPS Excl Extraord Items	0.00	-0.02	-0.02	-0.01	-0.01
Basic/Primary EPS Incl Extraord Items	0.00	-0.02	-0.02	-0.01	-0.01
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	0.0	-0.1	-0.1	-0.1	-0.1
Diluted Weighted Average Shares	4.8	4.8	4.8	4.8	4.8
Diluted EPS Excl Extraord Items	0.00	-0.02	-0.02	-0.01	-0.01
Diluted EPS Incl Extraord Items	0.00	-0.02	-0.02	-0.01	-0.01
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Interest Expense, Supplemental	0.0	0.0	0.1	-	0.1
Depreciation, Supplemental	0.1	0.1	0.1	0.1	0.1
Total Special Items	-	-	-	0.0	0.0
Normalized Income Before Tax	0.0	-0.1	-0.1	-0.2	-0.1
Effect of Special Items on Income Taxes	-	-	-	0.0	0.0
Inc Tax Ex Impact of Sp Items	0.0	0.0	0.0	-0.1	0.0
Normalized Income After Tax	0.0	-0.1	-0.1	-0.1	-0.1
Normalized Inc. Avail to Com.	0.0	-0.1	-0.1	-0.1	-0.1
Basic Normalized EPS	0.00	-0.02	-0.02	-0.01	-0.01
Diluted Normalized EPS	0.00	-0.02	-0.02	-0.01	-0.01
Normalized EBIT	0.0	-0.1	-0.1	-0.2	-0.1
Normalized EBITDA	0.1	0.0	0.0	0.0	0.0

Annual Balance Sheet

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Reclassified Normal 30-Jun-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash & Equivalents	0.5	0.8	1.6	0.1	0.1
Short Term Investments	0.1	0.4	0.5	0.0	-
Cash and Short Term Investments	0.6	1.3	2.0	0.1	0.1
Accounts Receivable - Trade, Gross	0.8	1.0	1.1	1.2	1.2
Provision for Doubtful Accounts	0.0	0.0	-0.1	-0.1	-0.1
Trade Accounts Receivable - Net	0.8	0.9	1.1	1.1	1.1
Other Receivables	-	-	-	-	0.0
Total Receivables, Net	0.8	0.9	1.1	1.1	1.1
Inventories - Finished Goods	0.2	0.1	0.1	0.4	0.3
Inventories - Work In Progress	0.0	0.0	0.2	0.3	0.2
Inventories - Raw Materials	0.2	0.1	0.3	0.4	0.4
Total Inventory	0.4	0.2	0.6	1.0	1.0
Prepaid Expenses	0.2	0.2	0.2	0.2	0.1
Deferred Income Tax - Current Asset	0.1	0.0	0.0	0.0	0.0
Other Current Assets	0.0	0.0	0.0	0.0	0.0
Other Current Assets, Total	0.1	0.0	0.0	0.0	0.0
Total Current Assets	2.1	2.7	3.9	2.4	2.4
Buildings	2.4	2.4	2.3	2.3	2.2
Land/Improvements	0.5	0.5	0.5	0.5	0.5
Machinery/Equipment	2.5	2.4	4.5	4.7	4.6
Property/Plant/Equipment - Gross	5.3	5.2	7.3	7.5	7.2
Accumulated Depreciation	-2.5	-2.2	-4.2	-4.2	-3.9
Property/Plant/Equipment - Net	2.9	3.0	3.1	3.3	3.3
Intangibles - Gross	1.5	1.4	1.3	1.3	1.3
Accumulated Intangible Amortization	-0.6	-0.5	-0.5	-0.5	-0.4
Intangibles, Net	0.8	0.8	0.7	0.8	0.9
Deferred Income Tax - Long Term Asset	1.2	1.0	0.5	0.6	0.6
Other Long Term Assets	-	-	-	-	0.0
Other Long Term Assets, Total	1.2	1.0	0.5	0.6	0.6
Total Assets	7.0	7.5	8.3	7.2	7.2
Accounts Payable	0.4	0.3	0.4	0.6	0.5
Accrued Expenses	0.3	0.3	0.3	0.3	0.4
Notes Payable/Short Term Debt	0.0	0.0	0.0	0.3	0.5
Current Portion - Long Term Debt/Capital Leases	0.1	0.1	0.1	0.2	0.2
Customer Advances	0.1	0.1	0.1	0.1	0.0
Income Taxes Payable	-	0.0	0.1	0.0	0.0
Other Current liabilities, Total	0.1	0.1	0.2	0.1	0.0
Total Current Liabilities	0.9	0.7	0.9	1.6	1.7
Long Term Debt	2.7	2.8	2.8	1.6	1.9
Capital Lease Obligations	0.0	0.0	0.1	0.1	0.0
Total Long Term Debt	2.7	2.8	2.9	1.7	1.9
Total Debt	2.8	2.9	2.9	2.2	2.6
Deferred Income Tax - LT Liability	0.3	0.3	0.3	0.3	0.3
Deferred Income Tax	0.3	0.3	0.3	0.3	0.3
Other Long Term Liabilities	0.1	0.2	0.2	0.0	0.1
Other Liabilities, Total	0.1	0.2	0.2	0.0	0.1
Total Liabilities	4.1	4.0	4.3	3.6	3.9
Common Stock	3.7	3.7	3.7	3.7	3.6
Common Stock	3.7	3.7	3.7	3.7	3.6
Additional Paid-In Capital	0.6	0.6	0.6	0.6	0.6
Retained Earnings (Accumulated Deficit)	-1.4	-0.8	-0.3	-0.8	-1.0
Treasury Stock - Common	0.0	0.0	0.0	0.0	0.0
Total Equity	2.9	3.5	4.1	3.6	3.3
Total Liabilities & Shareholders’ Equity	7.0	7.5	8.3	7.2	7.2
Shares Outstanding - Common Stock Primary Issue	4.8	4.8	4.8	4.8	4.7
Total Common Shares Outstanding	4.8	4.8	4.8	4.8	4.7
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Employees	43	48	73	73	70
Number of Common Shareholders	500	500	600	600	600
Accumulated Intangible Amort, Suppl.	0.6	0.5	0.5	0.5	0.4
Deferred Revenue - Current	0.1	0.1	0.1	0.1	0.0
Deferred Revenue - Long Term	0.1	0.2	0.2	0.0	0.1
Total Long Term Debt, Supplemental	2.8	2.8	2.9	1.9	2.1
Long Term Debt Maturing within 1 Year	0.1	0.0	0.0	0.2	0.2
Long Term Debt Maturing in Year 2	0.1	0.1	0.0	0.2	0.2
Long Term Debt Maturing in Year 3	0.1	0.1	0.1	0.3	0.2
Long Term Debt Maturing in Year 4	0.1	0.1	0.1	0.3	0.3
Long Term Debt Maturing in Year 5	0.1	0.1	0.1	0.3	0.3
Long Term Debt Maturing in 2-3 Years	0.1	0.1	0.1	0.5	0.5
Long Term Debt Maturing in 4-5 Years	0.1	0.1	0.1	0.6	0.5
Long Term Debt Matur. in Year 6 & Beyond	2.5	2.5	2.6	0.6	0.9
Total Capital Leases, Supplemental	0.0	0.1	0.1	0.1	-
Capital Lease Payments Due in Year 1	0.0	0.0	0.0	0.0	-
Capital Lease Payments Due in Year 2	0.0	0.0	0.0	0.0	-
Capital Lease Payments Due in Year 3	-	0.0	0.0	0.0	-
Capital Lease Payments Due in Year 4	-	-	0.0	0.0	-
Capital Lease Payments Due in Year 5	-	-	-	0.0	-
Capital Lease Payments Due in 2-3 Years	0.0	0.0	0.0	0.0	-
Capital Lease Payments Due in 4-5 Years	-	-	0.0	0.0	-
Cap. Lease Pymts. Due in Year 6 & Beyond	-	-	-	0.0	-

Interim Balance Sheet

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Cash & Equivalents	0.5	0.4	0.4	0.5	0.9
Short Term Investments	0.0	0.0	0.1	0.1	-
Cash and Short Term Investments	0.5	0.4	0.5	0.6	0.9
Accounts Receivable - Trade, Gross	0.9	0.8	0.8	0.8	0.7
Provision for Doubtful Accounts	0.0	0.0	0.0	0.0	0.0
Trade Accounts Receivable - Net	0.8	0.8	0.8	0.8	0.7
Total Receivables, Net	0.8	0.8	0.8	0.8	0.7
Total Inventory	0.2	0.3	0.4	0.4	0.3
Prepaid Expenses	0.2	0.2	0.2	0.2	0.2
Deferred Income Tax - Current Asset	0.1	0.1	0.2	0.1	-
Other Current Assets	0.0	0.0	0.0	0.0	0.0
Other Current Assets, Total	0.1	0.1	0.2	0.1	0.0
Total Current Assets	1.9	1.8	2.0	2.1	2.1
Property/Plant/Equipment - Net	2.7	2.8	2.8	2.9	2.9
Intangibles, Net	0.8	0.8	0.8	0.8	0.8
Deferred Income Tax - Long Term Asset	1.3	1.3	1.2	1.2	1.2
Other Long Term Assets, Total	1.3	1.3	1.2	1.2	1.2
Total Assets	6.7	6.6	6.9	7.0	7.1
Accounts Payable	0.4	0.4	0.4	0.4	0.4
Accrued Expenses	0.3	0.2	0.4	0.3	0.3
Notes Payable/Short Term Debt	0.0	0.0	0.0	0.0	0.0
Current Portion - Long Term Debt/Capital Leases	0.1	0.1	0.1	0.1	0.1
Customer Advances	0.1	0.1	0.1	0.1	0.2
Other Current liabilities, Total	0.1	0.1	0.1	0.1	0.2
Total Current Liabilities	0.9	0.8	0.9	0.9	0.9
Long Term Debt	2.7	2.7	2.7	2.7	2.7
Capital Lease Obligations	0.0	0.0	0.0	0.0	0.0
Total Long Term Debt	2.7	2.7	2.7	2.7	2.7
Total Debt	2.7	2.8	2.8	2.8	2.8
Deferred Income Tax - LT Liability	0.3	0.3	0.3	0.3	0.3
Deferred Income Tax	0.3	0.3	0.3	0.3	0.3
Other Long Term Liabilities	0.1	0.1	0.1	0.1	0.1
Other Liabilities, Total	0.1	0.1	0.1	0.1	0.1
Total Liabilities	3.9	3.8	4.0	4.1	4.1
Common Stock	3.7	3.7	3.7	3.7	3.7
Common Stock	3.7	3.7	3.7	3.7	3.7
Additional Paid-In Capital	0.6	0.6	0.6	0.6	0.6
Retained Earnings (Accumulated Deficit)	-1.6	-1.6	-1.5	-1.4	-1.3
Treasury Stock - Common	0.0	0.0	0.0	0.0	0.0
Total Equity	2.8	2.8	2.8	2.9	3.0
Total Liabilities & Shareholders’ Equity	6.7	6.6	6.9	7.0	7.1
Shares Outstanding - Common Stock Primary Issue	4.8	4.8	4.8	4.8	4.8
Total Common Shares Outstanding	4.8	4.8	4.8	4.8	4.8
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Deferred Revenue - Current	0.1	0.1	0.1	0.1	0.2
Deferred Revenue - Long Term	0.1	0.1	0.1	0.1	0.1

Annual Cash Flows

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Updated Normal 30-Jun-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income/Starting Line	-0.6	-0.6	0.5	0.2	-0.1
Depreciation	0.4	0.4	0.5	0.4	0.4
Depreciation/Depletion	0.4	0.4	0.5	0.4	0.4
Deferred Taxes	-0.3	-0.4	0.2	0.0	-0.1
Unusual Items	0.0	-0.3	-1.1	0.1	0.0
Other Non-Cash Items	-	-	-	0.0	0.1
Non-Cash Items	0.0	-0.3	-1.1	0.1	0.1
Accounts Receivable	0.1	0.1	0.0	0.0	0.1
Inventories	-0.2	0.1	0.2	-0.1	0.0
Prepaid Expenses	0.0	0.0	-0.1	0.0	0.0
Other Assets	0.0	0.0	0.0	0.0	0.2
Payable/Accrued	0.1	-0.1	-0.2	0.0	-0.1
Taxes Payable	0.0	-0.1	0.0	0.0	0.1
Other Liabilities	0.0	0.0	0.1	0.0	-0.1
Changes in Working Capital	0.1	0.0	0.0	0.0	0.2
Cash from Operating Activities	-0.4	-1.0	0.1	0.8	0.4
Purchase of Fixed Assets	-0.1	-0.2	-0.2	-0.2	-0.2
Purchase/Acquisition of Intangibles	-0.2	-0.3	-0.3	-0.2	-0.2
Capital Expenditures	-0.3	-0.5	-0.5	-0.4	-0.4
Sale/Maturity of Investment	0.4	1.5	1.6	0.0	0.0
Purchase of Investments	-0.1	-0.7	-0.5	0.0	0.0
Other Investing Cash Flow Items, Total	0.4	0.8	1.2	0.0	0.0
Cash from Investing Activities	0.1	0.3	0.7	-0.4	-0.4
Sale/Issuance of Common	-	-	0.0	0.1	0.0
Common Stock, Net	-	-	0.0	0.1	0.0
Issuance (Retirement) of Stock, Net	-	-	0.0	0.1	0.0
Long Term Debt Issued	-	0.0	2.9	0.0	-
Long Term Debt Reduction	-0.1	0.0	-1.9	-0.2	-0.2
Long Term Debt, Net	-0.1	0.0	0.7	-0.4	-0.3
Issuance (Retirement) of Debt, Net	-0.1	0.0	0.7	-0.4	-0.3
Cash from Financing Activities	-0.1	0.0	0.7	-0.4	-0.3
Net Change in Cash	-0.3	-0.7	1.5	0.0	-0.3
Net Cash - Beginning Balance	0.8	1.6	0.1	0.1	0.4
Net Cash - Ending Balance	0.5	0.8	1.6	0.1	0.1
Cash Interest Paid	0.2	0.2	0.2	0.2	0.2
Cash Taxes Paid	0.0	0.1	0.0	0.0	0.0

Interim Cash Flows

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
Period Length	9 Months	6 Months	3 Months	12 Months	9 Months
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Net Income/Starting Line	-0.2	-0.2	-0.1	-0.6	-0.5
Depreciation	0.3	0.2	0.1	0.4	0.3
Depreciation/Depletion	0.3	0.2	0.1	0.4	0.3
Deferred Taxes	-0.1	-0.1	0.0	-0.3	-0.2
Unusual Items	-	-	-	0.0	0.0
Non-Cash Items	-	-	-	0.0	0.0
Accounts Receivable	0.0	0.0	0.0	0.1	0.2
Inventories	0.2	0.1	0.1	-0.2	-0.1
Prepaid Expenses	0.0	0.0	0.0	0.0	0.0
Other Assets	0.0	0.0	0.0	0.0	0.0
Payable/Accrued	0.0	-0.1	0.1	0.1	0.1
Taxes Payable	0.0	0.0	-	0.0	0.0
Other Liabilities	-0.1	-0.1	-0.1	0.0	0.1
Changes in Working Capital	0.1	0.0	0.0	0.1	0.3
Cash from Operating Activities	0.2	-0.1	0.0	-0.4	-0.1
Purchase of Fixed Assets	0.0	0.0	0.0	-0.1	-0.1
Purchase/Acquisition of Intangibles	-0.1	-0.1	0.0	-0.2	-0.1
Capital Expenditures	-0.2	-0.1	0.0	-0.3	-0.3
Sale/Maturity of Investment	0.1	0.1	0.0	0.4	0.4
Purchase of Investments	-	-	-	-0.1	0.0
Other Investing Cash Flow	-	-	-	-	0.0
Other Investing Cash Flow Items, Total	0.1	0.1	0.0	0.4	0.4
Cash from Investing Activities	-0.1	0.0	0.0	0.1	0.2
Long Term Debt Reduction	0.0	0.0	0.0	-0.1	0.0
Long Term Debt, Net	0.0	0.0	0.0	-0.1	0.0
Issuance (Retirement) of Debt, Net	0.0	0.0	0.0	-0.1	0.0
Cash from Financing Activities	0.0	0.0	0.0	-0.1	0.0
Net Change in Cash	0.0	-0.1	-0.1	-0.3	0.0
Net Cash - Beginning Balance	0.5	0.5	0.5	0.8	0.8
Net Cash - Ending Balance	0.5	0.4	0.4	0.5	0.9
Cash Interest Paid	-	-	-	0.2	-
Cash Taxes Paid	-	-	-	0.0	-

Annual Income Statement

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Updated Normal 30-Jun-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Sale of products	3.1	3.8	4.4	4.7	4.9
Service revenues	1.4	1.4	2.1	1.8	1.5
Royalties and Contract Revenues	1.0	1.0	1.2	1.6	1.6
Total Revenue	5.5	6.2	7.8	8.0	8.1
Cost of Sales	1.6	2.4	3.2	3.0	3.1
Operating Expenses	4.6	5.0	4.9	4.6	5.0
Other Expenses, net	0.2	0.2	0.2	0.2	0.2
Stock Based Compensation	-	-	-	0.0	0.1
Impairment of Goodwill	-	-	-	-	0.0
Gain from Sale of Assets	0.0	-0.3	-1.3	0.0	-
Total Operating Expense	6.4	7.2	7.1	7.8	8.3
Net Income Before Taxes	-0.9	-1.0	0.7	0.2	-0.2
Provision for Income Taxes	-0.3	-0.5	0.2	0.0	-0.1
Net Income After Taxes	-0.6	-0.6	0.5	0.2	-0.1
Net Income Before Extra. Items	-0.6	-0.6	0.5	0.2	-0.1
Net Income	-0.6	-0.6	0.5	0.2	-0.1
Income Available to Com Excl ExtraOrd	-0.6	-0.6	0.5	0.2	-0.1
Income Available to Com Incl ExtraOrd	-0.6	-0.6	0.5	0.2	-0.1
Basic Weighted Average Shares	4.8	4.8	4.8	4.7	4.7
Basic EPS Excluding ExtraOrdinary Items	-0.12	-0.12	0.11	0.04	-0.02
Basic EPS Including ExtraOrdinary Item	-0.12	-0.12	0.11	0.04	-0.02
Dilution Adjustment	0.0	0.0	-	-	0.0
Diluted Net Income	-0.6	-0.6	0.5	0.2	-0.1
Diluted Weighted Average Shares	4.8	4.8	4.8	4.8	4.7
Diluted EPS Excluding ExtraOrd Items	-0.12	-0.12	0.11	0.04	-0.02
Diluted EPS Including ExtraOrd Items	-0.12	-0.12	0.11	0.04	-0.02
DPS-Common Stock	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	-0.9	-1.4	-0.6	0.2	-0.2
Inc Tax Ex Impact of Sp Items	-0.3	-0.6	-0.3	0.0	-0.1
Normalized Income After Taxes	-0.6	-0.8	-0.3	0.2	-0.1
Normalized Inc. Avail to Com.	-0.6	-0.8	-0.3	0.2	-0.1
Basic Normalized EPS	-0.12	-0.16	-0.07	0.04	-0.02
Diluted Normalized EPS	-0.12	-0.16	-0.07	0.04	-0.02
Research & Development Exp	0.7	0.8	0.9	0.8	1.1
Advertising Expenses	0.1	0.0	0.1	0.0	0.0
Depreciation	0.2	0.2	0.2	0.2	0.2
Amort of Intangibles	0.2	0.2	0.2	0.2	0.2
Current Tax - Federal	0.0	0.0	0.1	0.0	0.0
Current Tax - State	0.0	0.0	0.0	0.0	0.0
Current Tax - Total	0.0	0.0	0.1	0.0	0.0
Deferred Tax - Federal	-0.3	-0.4	0.2	0.0	-0.1
Deferred Tax - State	0.0	-0.1	-0.1	0.0	0.0
Deferred Tax - Total	-0.3	-0.5	0.1	0.0	-0.1
Income Tax - Total	-0.3	-0.5	0.2	0.0	-0.1

Interim Income Statement

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
Period Length	3 Months	3 Months	3 Months	3 Months	3 Months
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Product Sales	1.0	0.7	0.8	0.8	1.1
Service Revenues	0.3	0.4	0.4	0.4	0.3
Royality and Contract Fee	0.3	0.3	0.3	0.3	0.2
Total Revenue	1.6	1.4	1.4	1.5	1.6
Cost of Sales	0.5	0.4	0.4	0.4	0.5
Operating Expenses	1.1	1.0	1.1	1.2	1.1
Gain from Sale of Assets	-	-	-	0.0	0.0
Other Expenses, net	0.0	0.1	0.1	0.0	0.1
Total Operating Expense	1.6	1.5	1.6	1.7	1.6
Net Income Before Taxes	0.0	-0.1	-0.1	-0.2	-0.1
Provision for Income Taxes	0.0	0.0	0.0	-0.1	0.0
Net Income After Taxes	0.0	-0.1	-0.1	-0.1	-0.1
Net Income Before Extra. Items	0.0	-0.1	-0.1	-0.1	-0.1
Net Income	0.0	-0.1	-0.1	-0.1	-0.1
Income Available to Com Excl ExtraOrd	0.0	-0.1	-0.1	-0.1	-0.1
Income Available to Com Incl ExtraOrd	0.0	-0.1	-0.1	-0.1	-0.1
Basic Weighted Average Shares	4.8	4.8	4.8	4.8	4.8
Basic EPS Excluding ExtraOrdinary Items	0.00	-0.02	-0.02	-0.01	-0.01
Basic EPS Including ExtraOrdinary Item	0.00	-0.02	-0.02	-0.01	-0.01
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	0.0	-0.1	-0.1	-0.1	-0.1
Diluted Weighted Average Shares	4.8	4.8	4.8	4.8	4.8
Diluted EPS Excluding ExtraOrd Items	0.00	-0.02	-0.02	-0.01	-0.01
Diluted EPS Including ExtraOrd Items	0.00	-0.02	-0.02	-0.01	-0.01
DPS-Common Stock	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	0.0	-0.1	-0.1	-0.2	-0.1
Inc Tax Ex Impact of Sp Items	0.0	0.0	0.0	-0.1	0.0
Normalized Income After Taxes	0.0	-0.1	-0.1	-0.1	-0.1
Normalized Inc. Avail to Com.	0.0	-0.1	-0.1	-0.1	-0.1
Basic Normalized EPS	0.00	-0.02	-0.02	-0.01	-0.01
Diluted Normalized EPS	0.00	-0.02	-0.02	-0.01	-0.01
Interest Expense	0.0	0.0	0.1	-	0.1
Depreciation	0.1	0.1	0.1	0.1	0.1

Annual Balance Sheet

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Reclassified Normal 30-Jun-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash/Equivalents	0.5	0.8	1.6	0.1	0.1
Short-term investments	0.1	0.4	0.5	0.0	-
Accounts Receivable	0.8	1.0	1.1	1.2	1.2
Doubtful Account	0.0	0.0	-0.1	-0.1	-0.1
Finished Goods	0.2	0.1	0.1	0.4	0.3
Work-in-Progress	0.0	0.0	0.2	0.3	0.2
Raw Materials	0.2	0.1	0.3	0.4	0.4
Prepaid Expenses	0.2	0.2	0.2	0.2	0.1
Deferred Tax Asset	0.1	0.0	0.0	0.0	0.0
Income Tax Refund Receivable	-	-	-	-	0.0
Other	0.0	0.0	0.0	0.0	0.0
Total Current Assets	2.1	2.7	3.9	2.4	2.4
Land	0.5	0.5	0.5	0.5	0.5
Building	2.3	2.3	2.2	2.2	2.2
Machinery/Equipment	2.3	2.2	4.0	4.2	4.0
Leasehold Improvment	0.1	0.1	0.1	0.1	0.0
Furniture/Fixtures	0.2	0.2	0.6	0.6	0.6
Depreciation	-2.5	-2.2	-4.2	-4.2	-3.9
Deferred tax asset, non-current	1.2	1.0	0.5	0.6	0.6
Patents	1.4	1.4	1.3	1.2	1.2
Trademarks	0.1	0.1	0.0	0.1	0.1
Adjustment	-0.1	-0.1	-	-	-
Accumulated Amortization	-0.6	-0.5	-0.5	-0.5	-0.4
Accumulated Amortization impairement	-	0.0	-0.1	-	-
Other Assets	-	-	-	-	0.0
Total Assets	7.0	7.5	8.3	7.2	7.2
Accounts Payable	0.4	0.3	0.4	0.6	0.5
Short Term Borrowings	-	-	0.0	0.3	0.5
Accrued Expenses	0.3	0.3	0.3	0.3	0.4
Current Portion of Capital Lease	0.0	0.0	0.0	0.0	0.0
Deferred Revenue	0.1	0.1	0.1	0.1	0.0
Current Portion of Mortgage	0.1	0.0	0.0	0.2	0.2
Income Tax Payable	-	0.0	0.1	0.0	0.0
Total Current Liabilities	0.9	0.7	0.9	1.6	1.7
Long Term Portion of Capital Lease	0.0	0.0	0.1	0.1	0.0
Mortgage Payable	2.7	2.8	2.8	1.6	1.9
Total Long Term Debt	2.7	2.8	2.9	1.7	1.9
Deferred Taxes	0.3	0.3	0.3	0.3	0.3
Deferred Revenue	0.1	0.2	0.2	0.0	0.1
Total Liabilities	4.1	4.0	4.3	3.6	3.9
Common Stock	3.7	3.7	3.7	3.7	3.6
Contrib. Capital	0.6	0.6	0.6	0.6	0.6
Accumulated Deficit	-1.4	-0.8	-0.3	-0.8	-1.0
Treasury Stock	0.0	0.0	0.0	0.0	0.0
Total Equity	2.9	3.5	4.1	3.6	3.3
Total Liabilities & Shareholders' Equity	7.0	7.5	8.3	7.2	7.2
S/O-Common Stock	4.8	4.8	4.8	4.8	4.7
Total Common Shares Outstanding	4.8	4.8	4.8	4.8	4.7
T/S-Common Stock	0.0	0.0	0.0	0.0	0.0
Deferred Revenue - Current	0.1	0.1	0.1	0.1	0.0
Deferred Revenue - Long Term	0.1	0.2	0.2	0.0	0.1
Accumulated Intangibles Amortization	0.6	0.5	0.5	0.5	0.4
Full-Time Employees	43	48	73	73	70
Number of Common Shareholders	500	500	600	600	600
Long Term Debt Maturing within 1 Year	0.1	0.0	0.0	0.2	0.2
Long Term Debt Maturing within 2 Years	0.1	0.1	0.0	0.2	0.2
Long Term Debt Maturing within 3 Years	0.1	0.1	0.1	0.3	0.2
Long Term Debt Maturing within 4 Years	0.1	0.1	0.1	0.3	0.3
Long Term Debt Maturing within 5 Years	0.1	0.1	0.1	0.3	0.3
Long Term Debt Remaining Maturities	2.5	2.5	2.6	0.6	0.9
Total Long Term Debt, Supplemental	2.8	2.8	2.9	1.9	2.1
Capital Leases Maturing within 1 Year	0.0	0.0	0.0	0.0	-
Capital Leases Maturing within 2 Years	0.0	0.0	0.0	0.0	-
Capital Leases Maturing within 3 Years	-	0.0	0.0	0.0	-
Capital Leases Maturing within 4 Years	-	-	0.0	0.0	-
Capital Leases Maturing within 5 Years	-	-	-	0.0	-
Capital Leases Remaining Maturities	-	-	-	0.0	-
Total Capital Leases	0.0	0.1	0.1	0.1	-

Interim Balance Sheet

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Cash/Equivalents	0.5	0.4	0.4	0.5	0.9
Deposits/Short Term Investments	0.0	0.0	0.1	0.1	-
Accounts Receivable	0.9	0.8	0.8	0.8	0.7
Doubtful Accounts	0.0	0.0	0.0	0.0	0.0
Inventory	0.2	0.3	0.4	0.4	0.3
Prepaid Expenses	0.2	0.2	0.2	0.2	0.2
Deferred Tax Asset	0.1	0.1	0.2	0.1	-
Other	0.0	0.0	0.0	0.0	0.0
Total Current Assets	1.9	1.8	2.0	2.1	2.1
Property and equipment, net	2.7	2.8	2.8	2.9	2.9
Deferred Tax Asset	1.3	1.3	1.2	1.2	1.2
Intangible	0.8	0.8	0.8	0.8	0.8
Total Assets	6.7	6.6	6.9	7.0	7.1
Accounts Payable	0.4	0.4	0.4	0.4	0.4
Accrued Expenses	0.3	0.2	0.4	0.3	0.3
Current Portion, Capital Lease	0.0	0.0	0.0	0.0	0.0
Deferred Revenue	0.1	0.1	0.1	0.1	0.2
Current Portion Mortgage	0.1	0.1	0.1	0.1	0.1
Total Current Liabilities	0.9	0.8	0.9	0.9	0.9
Mortgage Payable	2.7	2.7	2.7	2.7	2.7
Long Term, Capital Lease	0.0	0.0	0.0	0.0	0.0
Total Long Term Debt	2.7	2.7	2.7	2.7	2.7
Deferred Taxes	0.3	0.3	0.3	0.3	0.3
Deferred Revenue	0.1	0.1	0.1	0.1	0.1
Total Liabilities	3.9	3.8	4.0	4.1	4.1
Common Stock	3.7	3.7	3.7	3.7	3.7
Contributed Capital	0.6	0.6	0.6	0.6	0.6
Accumulated Deficit	-1.6	-1.6	-1.5	-1.4	-1.3
Treasury Stock	0.0	0.0	0.0	0.0	0.0
Total Equity	2.8	2.8	2.8	2.9	3.0
Total Liabilities & Shareholders' Equity	6.7	6.6	6.9	7.0	7.1
S/O-Common Stock	4.8	4.8	4.8	4.8	4.8
Total Common Shares Outstanding	4.8	4.8	4.8	4.8	4.8
T/S-Common Stock	0.0	0.0	0.0	0.0	0.0
Deferred Revenue - Current	0.1	0.1	0.1	0.1	0.2
Deferred Revenue-Long Term	0.1	0.1	0.1	0.1	0.1

Annual Cash Flows

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	30-Jun-2011	30-Jun-2010	30-Jun-2009	30-Jun-2008	30-Jun-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 30-Jun-2011	Updated Normal 30-Jun-2010	Updated Normal 30-Jun-2009	Updated Normal 30-Jun-2008	Updated Normal 30-Jun-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg, Rich, Baker, Berman & Company	Rosenberg & Company
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income	-0.6	-0.6	0.5	0.2	-0.1
Depreciation	0.4	0.4	0.5	0.4	0.4
Gain from the Sale of Product Lines	0.0	-0.3	-1.3	0.0	-
Impairment of Goodwill	-	0.0	0.2	0.1	0.0
Gain on Asset Sale	-	0.0	0.1	0.0	-
Deferred Tax Asset	-0.3	-0.4	0.2	0.0	-0.1
Trade Receivables	0.1	0.1	0.0	0.0	0.1
Inventory	-0.2	0.1	0.2	-0.1	0.0
Prepaid Expenses	0.0	0.0	-0.1	0.0	0.0
Other Assets	0.0	0.0	0.0	0.0	0.2
Payable/Accrued	0.1	-0.1	-0.2	0.0	-0.1
Deferred Revenue	0.0	0.0	0.1	0.0	-0.1
Income Taxes Payable	0.0	-0.1	0.0	0.0	0.1
Stock Based Compensation	-	-	-	0.0	0.1
Cash from Operating Activities	-0.4	-1.0	0.1	0.8	0.4
Capital Expenditures	-0.1	-0.2	-0.2	-0.2	-0.2
Purchase of Intangibles	-0.2	-0.3	-0.3	-0.2	-0.2
Sale of Securities	-	0.8	1.6	0.0	0.0
Maturity of short-term investments	0.4	0.7	0.0	-	-
Purchase of Securities	-0.1	-0.7	-0.5	0.0	0.0
Cash from Investing Activities	0.1	0.3	0.7	-0.4	-0.4
Credit Line Borrowing	-	0.0	-0.3	-0.2	-0.1
Repayment Of Long Term Borrowings	-0.1	0.0	-1.9	-0.2	-0.2
Issuance of Common Stock	-	-	0.0	0.1	0.0
New Long-term Borrowings	-	0.0	2.9	0.0	-
Cash from Financing Activities	-0.1	0.0	0.7	-0.4	-0.3
Net Change in Cash	-0.3	-0.7	1.5	0.0	-0.3
Net Cash - Beginning Balance	0.8	1.6	0.1	0.1	0.4
Net Cash - Ending Balance	0.5	0.8	1.6	0.1	0.1
Cash Interest Paid	0.2	0.2	0.2	0.2	0.2
Cash Taxes Paid	0.0	0.1	0.0	0.0	0.0

Interim Cash Flows

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
Period Length	9 Months	6 Months	3 Months	12 Months	9 Months
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Net Income	-0.2	-0.2	-0.1	-0.6	-0.5
Depreciation	0.3	0.2	0.1	0.4	0.3
Gain from the sale of Product Lines	-	-	-	0.0	0.0
Deferred Tax Asset	-0.1	-0.1	0.0	-0.3	-0.2
Trade receivables	0.0	0.0	0.0	0.1	0.2
Inventory	0.2	0.1	0.1	-0.2	-0.1
Prepaid Expenses	0.0	0.0	0.0	0.0	0.0
Other Assets	0.0	0.0	0.0	0.0	0.0
Accounts payable and accrued liabilities	0.0	-0.1	0.1	0.1	0.1
Deferred Income	-0.1	-0.1	-0.1	0.0	0.1
Income Taxes Payable	0.0	0.0	-	0.0	0.0
Cash from Operating Activities	0.2	-0.1	0.0	-0.4	-0.1
Capital Expenditures	0.0	0.0	0.0	-0.1	-0.1
Patents	-0.1	-0.1	0.0	-0.2	-
Sale of Short Term Investments	0.1	0.1	0.0	-	0.4
Maturity of short-term investments	-	-	-	0.4	-
Purchase of Short Term Investments	-	-	-	-0.1	0.0
Sale of Product Lines	-	-	-	-	0.0
Trademarks	-	-	-	-	-0.1
Cash from Investing Activities	-0.1	0.0	0.0	0.1	0.2
Long Term Mortgage Paid	-	0.0	0.0	-0.1	0.0
Repayment Of Long Term Borrowings	0.0	-	-	-	-
Cash from Financing Activities	0.0	0.0	0.0	-0.1	0.0
Net Change in Cash	0.0	-0.1	-0.1	-0.3	0.0
Net Cash - Beginning Balance	0.5	0.5	0.5	0.8	0.8
Net Cash - Ending Balance	0.5	0.4	0.4	0.5	0.9
Cash Interest Paid	-	-	-	0.2	-
Cash Taxes Paid	-	-	-	0.0	-

Geographic Segments

Financials in: As Reported (mil)

Annual

External Revenue   USD (mil)
	30-Jun-11		30-Jun-10		30-Jun-09		30-Jun-08		30-Jun-07
Domestic	3.3	60 %	4.5	72 %	6.4	83 %	6.5	81 %	6.9	85 %
Foreign	2.2	40 %	1.7	28 %	1.3	17 %	1.5	19 %	1.2	15 %
Segment Total	5.5	100 %	6.2	100 %	7.8	100 %	8.0	100 %	8.1	100 %
Consolidated Total	5.5	100 %	6.2	100 %	7.8	100 %	8.0	100 %	8.1	100 %
Total Revenue   USD (mil)
	30-Jun-11		30-Jun-10		30-Jun-09		30-Jun-08		30-Jun-07
Domestic	3.3	60 %	4.5	72 %	6.4	83 %	6.5	81 %	6.9	85 %
Foreign	2.2	40 %	1.7	28 %	1.3	17 %	1.5	19 %	1.2	15 %
Segment Total	5.5	100 %	6.2	100 %	7.8	100 %	8.0	100 %	8.1	100 %
Consolidated Total	5.5	100 %	6.2	100 %	7.8	100 %	8.0	100 %	8.1	100 %

Geographic Segments

Financials in: As Reported (mil)

Interim

External Revenue   USD (mil)
	31-Mar-12		31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11
Domestic	1.0	65.8 %	0.8	59.9 %	1.0	66 %	0.9	62.6 %	0.7	46.3 %
Foreign	0.5	34.2 %	0.6	40.1 %	0.5	34 %	0.6	37.4 %	0.8	53.7 %
Segment Total	1.6	100 %	1.4	100 %	1.4	100 %	1.5	100 %	1.6	100 %
Consolidated Total	1.6	100 %	1.4	100 %	1.4	100 %	1.5	100 %	1.6	100 %
Total Revenue   USD (mil)
	31-Mar-12		31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11
Domestic	1.0	65.8 %	0.8	59.9 %	1.0	66 %	0.9	62.6 %	0.7	46.3 %
Foreign	0.5	34.2 %	0.6	40.1 %	0.5	34 %	0.6	37.4 %	0.8	53.7 %
Segment Total	1.6	100 %	1.4	100 %	1.4	100 %	1.5	100 %	1.6	100 %
Consolidated Total	1.6	100 %	1.4	100 %	1.4	100 %	1.5	100 %	1.6	100 %

Business Segments

Financials in: As Reported (mil)

Annual

External Revenue   USD (mil)
	30-Jun-11		30-Jun-10		30-Jun-09		30-Jun-08		30-Jun-07
Polymer Research	4.2	76.6 %	4.1	66.7 %	4.4	56.8 %	4.4	54.9 %	4.3	52.5 %
Medical Products	1.3	23.4 %	2.1	33.3 %	3.3	43.2 %	3.6	45.1 %	3.8	47.5 %
Segment Total	5.5	100 %	6.2	100 %	7.8	100 %	8.0	100 %	8.1	100 %
Corporate Overhead	0.0	0 %	0.0	0 %	0.0	0 %	0.0	0 %	0.0	0 %
Consolidated Total	5.5	100 %	6.2	100 %	7.8	100 %	8.0	100 %	8.1	100 %
Total Revenue   USD (mil)
	30-Jun-11		30-Jun-10		30-Jun-09		30-Jun-08		30-Jun-07
Polymer Research	4.2	76.6 %	4.1	66.7 %	4.4	56.8 %	4.4	54.9 %	4.3	52.5 %
Medical Products	1.3	23.4 %	2.1	33.3 %	3.3	43.2 %	3.6	45.1 %	3.8	47.5 %
Segment Total	5.5	100 %	6.2	100 %	7.8	100 %	8.0	100 %	8.1	100 %
Corporate Overhead	0.0	0 %	0.0	0 %	0.0	0 %	0.0	0 %	0.0	0 %
Consolidated Total	5.5	100 %	6.2	100 %	7.8	100 %	8.0	100 %	8.1	100 %

Total Operating Expense   USD (mil)
	30-Jun-11		30-Jun-10		30-Jun-09		30-Jun-08		30-Jun-07
Polymer Research	3.6	75.6 %	3.7	66.2 %	3.6	65.6 %	3.3	51.7 %	3.5	52.3 %
Medical Products	1.2	24.4 %	1.9	33.9 %	1.9	34.4 %	3.1	48.3 %	3.2	47.7 %
Segment Total	4.8	100 %	5.7	100 %	5.5	100 %	6.3	100 %	6.7	100 %
Corporate Overhead	1.6	33.9 %	1.6	27.8 %	1.6	28.9 %	1.5	23.8 %	1.6	23.4 %
Consolidated Total	6.4	133.8 %	7.2	127.8 %	7.1	128.9 %	7.8	123.8 %	8.3	123.4 %
Income Before Tax   USD (mil)
	30-Jun-11		30-Jun-10		30-Jun-09		30-Jun-08		30-Jun-07
Polymer Research	0.6	83.5 %	0.8	35.7 %	0.8	35.7 %	1.1	67.1 %	0.7	53.1 %
Medical Products	0.1	16.5 %	1.5	64.3 %	1.5	64.3 %	0.6	32.9 %	0.6	46.9 %
Segment Total	0.7	100 %	2.3	100 %	2.3	100 %	1.7	100 %	1.4	100 %
Corporate Overhead	-1.6	-227 %	-1.6	-69.8 %	-1.6	-69.8 %	-1.5	-88.7 %	-1.6	-115.2 %
Consolidated Total	-0.9	-126.8 %	0.7	30.2 %	0.7	30.2 %	0.2	11.3 %	-0.2	-15.2 %

Pre-Tax Margin (%)
	30-Jun-11		30-Jun-10		30-Jun-09		30-Jun-08		30-Jun-07
Polymer Research	14.2	-	19.6	-	18.4	-	25.8	-	17.1	-
Medical Products	9.1	-	70.7	-	43.6	-	15.5	-	16.7	-
Segment Total	13.0	-	36.6	-	29.3	-	21.2	-	16.9	-
Consolidated Total	-16.5	-	11.0	-	8.8	-	2.4	-	-2.6	-

Business Segments

Financials in: As Reported (mil)

Interim

External Revenue   USD (mil)
	31-Mar-12		31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11
Polymer Research	1.2	76.4 %	1.1	77.9 %	1.1	75.4 %	1.2	79.8 %	1.3	82 %
Medical Products	0.4	23.6 %	0.3	22 %	0.4	24.6 %	0.3	20.2 %	0.3	18 %
Segment Total	1.6	100 %	1.4	100 %	1.4	100 %	1.5	100 %	1.6	100 %
Corporate Overhead	0.0	0 %	0.0	0 %	-	-	0.0	0 %	0.0	0 %
Consolidated Total	1.6	100 %	1.4	100 %	1.4	100 %	1.5	100 %	1.6	100 %
Total Revenue   USD (mil)
	31-Mar-12		31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11
Polymer Research	1.2	76.4 %	1.1	77.9 %	1.1	75.4 %	1.2	79.8 %	1.3	82 %
Medical Products	0.4	23.6 %	0.3	22 %	0.4	24.6 %	0.3	20.2 %	0.3	18 %
Segment Total	1.6	100 %	1.4	100 %	1.4	100 %	1.5	100 %	1.6	100 %
Corporate Overhead	0.0	0 %	0.0	0 %	-	-	0.0	0 %	0.0	0 %
Consolidated Total	1.6	100 %	1.4	100 %	1.4	100 %	1.5	100 %	1.6	100 %

Total Operating Expense   USD (mil)
	31-Mar-12		31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11
Polymer Research	0.9	73.1 %	0.9	78.6 %	0.9	75.6 %	1.0	81 %	1.0	81.5 %
Medical Products	0.3	26.9 %	0.2	21.4 %	0.3	24.4 %	0.2	19.1 %	0.2	18.5 %
Segment Total	1.2	100 %	1.1	100 %	1.2	100 %	1.3	100 %	1.3	100 %
Corporate Overhead	0.4	32 %	0.4	35.4 %	0.4	34.2 %	0.4	32.3 %	0.4	31.2 %
Consolidated Total	1.6	131.9 %	1.5	135.4 %	1.6	134.2 %	1.7	132.4 %	1.6	131.1 %
Income Before Tax   USD (mil)
	31-Mar-12		31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11
Polymer Research	0.3	86.9 %	0.6	75 %	0.2	74.7 %	0.2	73.7 %	0.3	84.2 %
Medical Products	0.0	13.1 %	0.2	25 %	0.1	25.3 %	0.1	25.9 %	0.0	15.8 %
Segment Total	0.4	100 %	0.8	100 %	0.3	100 %	0.3	100 %	0.3	100 %
Corporate Overhead	-0.4	-103.8 %	-1.2	-144.7 %	-0.4	-144.8 %	-0.4	-161 %	-0.4	-131.2 %
Consolidated Total	0.0	-3.5 %	-0.4	-44.7 %	-0.1	-44.8 %	-0.2	-61.4 %	-0.1	-30.9 %

Pre-Tax Margin (%)
	31-Mar-12		31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11
Polymer Research	26.8	-	57.1	-	19.0	-	15.4	-	19.7	-
Medical Products	13.1	-	67.4	-	19.7	-	21.4	-	16.8	-
Segment Total	23.6	-	59.4	-	19.1	-	16.7	-	19.2	-
Consolidated Total	-0.8	-	-26.6	-	-8.6	-	-10.3	-	-5.9	-

Bottom of Form

Standard & Poor’s

United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

Publication date: 05-Aug-2011 20:13:14 EST

---

· We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.

· We have also removed both the short- and long-term ratings from CreditWatch negative.

· The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.

· More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

· Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.

· The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for

debt service--remains 'AAA'.

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.

Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria (see "Sovereign Government Rating Methodology and Assumptions ," June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.

We have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment of 2011 has removed any perceived immediate threat of payment default posed by delays to raising the government's debt ceiling. In addition, we believe that the act provides sufficient clarity to allow us to evaluate the likely course of U.S. fiscal policy for the next few years.

The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements,

the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.

Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and Assumptions," June 30, 2011, especially Paragraphs 36-41). In our view, the difficulty in framing a consensus on fiscal policy weakens the government's ability to manage public finances and diverts attention from the debate over how to achieve more balanced and dynamic economic growth in an era of fiscal stringency and private-sector deleveraging (ibid). A new political consensus might (or might not) emerge after the 2012 elections, but we believe that by then, the government debt burden will likely be higher, the needed medium-term fiscal adjustment potentially greater, and the inflection point on the U.S. population's demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely Cost Even More Green, Now," June 21, 2011).

Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.'s finances on a sustainable footing.

The act calls for as much as $2.4 trillion of reductions in expenditure growth over the 10 years through 2021. These cuts will be implemented in two steps: the $917 billion agreed to initially, followed by an additional $1.5 trillion that the newly formed Congressional Joint Select Committee on Deficit Reduction is supposed to recommend by November 2011. The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them.

The act further provides that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion will be implemented over the same time period. The reductions would mainly affect outlays for civilian discretionary spending, defense, and Medicare. We understand that this fall-back mechanism is designed to encourage Congress to embrace a more balanced mix of expenditure savings, as the committee might recommend.

We note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated total budgetary savings under the act to be at least $2.1 trillion over the next 10 years relative to its baseline assumptions. In updating our own fiscal projections, with certain modifications outlined below, we have relied on the CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to include the CBO assumptions contained in its Aug. 1 letter to Congress. In general, the CBO's "Alternate Fiscal Scenario" assumes a continuation of recent Congressional action overriding existing law.

We view the act's measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow. Under our revised base case fiscal scenario--which we consider to be consistent with a 'AA+' long-term rating and a negative outlook--we now project that net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high in relation to those of peer credits and, as noted, would continue to rise under the act's revised policy settings.

Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.

Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating. In this scenario, we project that the net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.

Our revised downside scenario--which, other things being equal, we view as being consistent with a possible further downgrade to a 'AA' long-term rating--features less-favorable macroeconomic assumptions, as outlined below and also assumes that the second round of spending cuts (at least $1.2 trillion) that the act calls for does not occur. This scenario also assumes somewhat higher nominal interest rates for U.S. Treasuries. We still believe that the role of the U.S. dollar as the key reserve currency confers a government funding advantage, one that could change only slowly over time, and that Fed policy might lean toward continued loose monetary policy at a time of fiscal tightening. Nonetheless, it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021.

Our revised scenarios also take into account the significant negative revisions to historical GDP data that the Bureau of Economic Analysis announced on July 29. From our perspective, the effect of these revisions underscores two related points when evaluating the likely debt trajectory of the U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.

When comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as relevant peers--Canada, France, Germany, and the U.K.--we also observe, based on our base case scenarios for each, that the trajectory of the U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.

Standard & Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment reflects our view of the likelihood of the sovereign restricting other public and private issuers' access to foreign exchange needed to meet debt service. Although in our view the credit standing of the U.S. government has deteriorated modestly, we see little indication that official interference of this kind is entering onto the policy agenda of either Congress or the Administration. Consequently, we continue to view this risk as being highly remote.

The outlook on the long-term rating is negative. As our downside alternate fiscal scenario illustrates, a higher public debt trajectory than we currently assume could lead us to lower the long-term rating again. On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction--independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government's debt dynamics, the long-term rating could stabilize at 'AA+'.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.76
UK Pound	1	Rs.86.79
Euro	1	Rs.67.43

INFORMATION DETAILS

Report Prepared by :

PRL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.